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Inflation in China hits 34-month high

Consumer inflation in China rose to its highest level in nearly three years in May, up 5.5 per cent from a year earlier, according to government figures released on Tuesday.

The benchmark consumer price index accelerated from the 5.3 per cent year-on-year rise recorded in April, despite government efforts to rein in liquidity and slow price rises.

Persistent inflationary pressure means Beijing is unlikely to let up on its current round of monetary tightening even though the overall economy appears to be cooling.

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