Material costs rise 6.1 percent in July

THE cost of production materials in China jumped 6.1 percent in July from a year earlier and expanded 0.8 percent on a monthly basis, the central bank said today.

The corporate goods price index, previously called the wholesale price index, reflects price changes of products traded between companies, and traced overall price fluctuations together with the consumer price index.

Livestock prices surged 39.8 percent from a year earlier mainly due to higher pork costs, which ballooned 85.8 percent, the People's Bank of China said.

Price of agricultural products rose 15.1 percent from a year earlier.

Grain rose nine percent from a year earlier and corn prices jumped 13.8 percent. Edible oils surged 45.3 percent in the period.

Processed food rose 11.2 percent from a year earlier.

Coal rose 8.9 percent and crude oil dropped 6.9 percent. The price of iron ore rose 12.2 percent and steel rose 7.7 percent.

Inflation last month expanded at the fastest pace in more than a decade. Consumer prices, the main gauge of inflation, jumped 5.6 percent from July last year, the National Bureau of Statistics said yesterday.