The increase was largely due to the renewed acceleration in food price inflation & # 39; and disturbances in the supply of pork caused by African swine fever, Capital Economics said in a note.
But while prices are rising, demand remains weak due to the trade war with the United States and economic uncertainty.
The Consumer Price Index (CPI) – an important indicator of consumer inflation – was 2.7 percent, according to the National Bureau of Statistics (NBS), compared to 2.5 percent in April and the highest since February 2018.
The data was consistent with a forecast from analysts questioned by Bloomberg News.
The increase was "largely the result of renewed acceleration in food price inflation," and disruptions in pork supply caused by African swine fever, Capital Economics said in a note.
Millions of pigs have been culled recently as the disease cut across China and beyond, destroying global food chains and influencing pork prices from Hong Kong's food markets to American dinner tables.
The price of pork rose by 18.2 percent in May, said China & # 39; s NBS. The price of fresh fruit on an annual basis was 26.7 percent higher than the bad weather delivered.
According to official Beijing statistics, about one million pigs have been killed since the first outbreak in August – but this is generally considered an underestimate.
The producer price index (PPI), an important indicator of domestic demand, reached 0.6 percent in May, compared to 0.9 percent the previous month.
Economic "growth can further slow due to the escalation of tensions between the US and China," Nomura International said in a note.
"We expect Beijing to take further reducing / stimulating measures to strengthen confidence and stabilize growth."
US President Donald Trump is expected to meet Xi Jinping this month at the G20 Summit in Japan to discuss the long-term trade section, but US Trade Minister Wilbur Ross has warned that it will not be a phase of a "final deal"
. (tagsToTranslate) China (t) Chinese economy (t) inflation