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

Economic IndicatorsAssociated 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.

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.

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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.