Chinese price inflation edges up

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Chinese consumer inflation rose in August, with a notable rise in services, according to data from the National Bureau of Statistics.

Consumer inflation for August hit 1.3%, compared to July's figure of 1%.

The price of services rose 2.3%, with the cost of housekeepers and household repairs rising strongly.

But August's overall rise did not concern analysts, who said it was in line with expectations and that inflation was still in check.

Utility prices

"It's close enough to expectations to not give rise to any worries about inflation," said Tim Condon of ING.

Looking forward, rising energy prices could be a cause for concern.

"The main potential driver on consumer inflation is public utility prices," said Li Huiyong, an analyst with Shenyin & Wanguo Securities.

The Asian Development Bank meanwhile revised downwards its inflation forecast for the Asian giant, stating that rising petrol and services prices have impacted on overall prices less than expected.

The latest consumer price figures come after China saw the inflation rate in producer prices fall in August, to 3.4% from 3.6% the month before.