According to the latest data released, the Chinese inflation rose more than expected during the month of June as food items became costlier in the country.

The National Bureau of Statistics said today in Beijing that the consumer price index increased 2.7 per cent compared to a year earlier. Analysts were expecting the consumer price index to rise 2.5 per cent during the month compared to the same month of the previous year. The data also showed that the producer prices fell 2.7 per cent, according to the latest data available.

Experts have said that the rising data means that there will be less scope for the People's Bank of China, the country's central bank to lower interest rate in world's second largest economy in order to boost growth. It is believed that the central bank will adopt a neutral stance in the coming months to maintain growth while at the same time keep inflation under control. The authorities are looking to avoid situations like the property bubbles in the economy.

Experts said that the interest rates are not likely to go down this year but the inflation is expected to ease in the coming months allowing the central bank to consider lowering rates in the coming year.