Stormy summer drives China's consumer prices higher

STORY: Extreme weather stirred up Chinese consumer prices in August.

Inflation accelerated to the fastest pace in half a year last month.

But the uptick was due more to higher food costs from weather disruptions than a recovery in domestic demand, meaning deflation remains the bigger worry.

Official data Monday (September 9) showed the consumer price index rose 0.6% from a year earlier last month, against a 0.5% rise in July - though it was below analyst forecasts.

Extreme weather this summer from typhoons to deadly floods and scorching heat has pushed up farm produce prices, and that contributed to faster inflation.

State media said crops affected by various natural disasters totalled 1.46 million hectares in August.

Food prices jumped 2.8% on the year that month, from an unchanged outcome in July, while producer prices fell at their fastest pace in four months.

A tough start in the second half has put pressure on Beijing to roll out more support measures.

The economy faces a prolonged housing downturn, persistent joblessness, debt woes and rising trade tensions.

In unusually strong comments last week, former Chinese central bank governor Yi Gang called for more efforts to fight deflationary pressure.

Global brokerages have also scaled back this year's growth forecasts for China to below the official target of around 5%.