China's June inflation edges up to 1.4 percent, leaving room for economic stimulus

Economic Indicators Associated Press

China's consumer inflation edged up to a still-low 1.4 percent in June, leaving room for Beijing to cut interest rates or take other steps to stimulate slowing economic growth.

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Government data on Thursday showed inflation rose from the previous month's 1.2 percent, driven by a 1.9 percent rise in food costs.

Forecasters say the economy grew by 7 percent or slightly below that in the latest quarter, in line with the previous quarter's six-year low of 7 percent.

The communist government has cut interest rates four times since November to spur economic growth and has launched mini-stimulus measures using extra spending on building public works.