China’s inflation rate rose by more than expected in June, increasing to 2.7% from 2.1% the month before.
Food price inflation was 4.9% in June, compared with 3.2% in May, with rising pork prices partly to blame.
While the headline inflation number was above analysts’ expectations, it remains below the government’s target figure of 3.5%.
Analysts say the latest figure reduces the prospect of interest rate cuts in 2013.
Cutting interest rates risks inflating a property bubble, while tightening may put additional pressure on the economy in the middle of the current global economic uncertainty.