China's CPI Rose 6.5% in July, a 37-Month High
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After reaching a 36-month high 6.4 percent increase in CPI during June, China's inflation index rose 6.5 percent in July, data from the nation's National Bureau of Statistics showed Tuesday.
Food prices increased 14.8 percent from July 2010, and pork -- a staple in the Chinese diet -- has increased 57 percent in July.
China's central bank has ordered institutions to retain 21.5 percent of cash in reserves in order to soak up liquidity.
While the data looks concerning, it may be only a matter of time before the world's second-largest economy begins to show signs of stabilization. In the second quarter, China's GDP fell 0.1 point from 9.6 percent in the first quarter to 9.5 percent. Manufacturing growth has slowed to a 29-month low in July.
iShares FTSE China 25 Index Fund (NYSE: FXI) is 1.6 percent higher Tuesday.
Food prices increased 14.8 percent from July 2010, and pork -- a staple in the Chinese diet -- has increased 57 percent in July.
China's central bank has ordered institutions to retain 21.5 percent of cash in reserves in order to soak up liquidity.
While the data looks concerning, it may be only a matter of time before the world's second-largest economy begins to show signs of stabilization. In the second quarter, China's GDP fell 0.1 point from 9.6 percent in the first quarter to 9.5 percent. Manufacturing growth has slowed to a 29-month low in July.
iShares FTSE China 25 Index Fund (NYSE: FXI) is 1.6 percent higher Tuesday.
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