China faces growing pressure in the second half of this year to contain inflation as a slew of internal and external factors will push up consumer prices, the National Bureau of Statistics said yesterday.

The country will be under "very big" influence from constantly rising international prices, especially in the oil and food sectors, Li Xiaochao, a spokesman at the statistics bureau, said yesterday.

China's consumer prices advanced 7.1 percent in June compared with a 7.7-percent increase in May, the bureau said. For the first half of this year, consumer prices jumped 7.9 percent.

Rising producer prices will also be passed on to consumers in the form of higher prices, Li said in a Beijing media briefing.

The demand for construction materials to rebuild earthquake-stricken areas in Sichuan Province will likely lead to a new round of price rises, he said.

Producer prices climbed 8.8 percent in June from a year earlier, the bureau said, after rising 8.2 percent in May. The pace of growth was the fastest for a single month since the bureau started to compile the figure in 1999.

Prices still high

"Although the growth in consumer prices has eased recently, they are still at a high level," said Li.

"High inflation will affect people's living, especially those with low incomes. We will continue to curb rapid growth in prices."

China should strike a balance in dealing with pressures from inflation and employment, Li added. Rapid economic growth will boost employment but also can boost prices, he said.

(Shanghai Daily July 18,  2008)