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China inflation at 7-month high, limits room for easing despite export tumble

From reuters.com

China's annual consumer inflation rate rose to a seven-month high of 3.1 percent in September as poor weather drove up food prices, limiting the scope for the central bank to maneuver to support the economy even as exports showed a surprise decline. But few analysts expect a further sharp rise in inflation or policy tightening in coming months as the world's second-largest economy still faces a weak global environment and Beijing tries to tap the brake on credit-fuelled investment. The inflation rate was higher than a median forecast of 2.9 percent in a Reuters poll and August's 2.6 percent, but was still below the ... (full story)

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