China's CPI Rises to 21-month High in July and Industrial Growth Slows

The much awaited results of eceonomic performance in China have just been released.

China's consumer price index, one of the main gauges of inflation, rose in July to its highest level since October 2008.

Figures from the National Bureau of Statistics show that CPI was up 3.3 percent in July higher then government target.

However, Food prices climbed almost 7 percent in July, compared with June's increase of almost 6.

Separate figures from the National Bureau of Statistics also showed that Chinese industrial growth slowed after the government cut stimulus measures, and curbed bank lending and also instigated measure to cool the hot property market.

Compared to last year factory output was up 13.5% but this was the fifth consecutive month that the annual pace has slowed and July this year has ssen the lowest rate.

Retail sales and factory investment have also eased.

Earlier this week, figures showed that China's import growth also slowed in July, which economists see as a sign that the country's rapid economic expansion is easing.

So if China is entering a period of slower growth and looming inflation; what do these indicators tell us about the world's second largest economy?

We are now joined by Gu Wei, Greater China columnist for Reuters Breakingviews, in Hong Kong.

1. So no real surprises from these recent statistics how do you see the current situation?

2 China needs to control its inflation rate can it achieve its goal of 3 percent this year?

3. So if China is entering a period of slower growth and higher inflation, what impact will this have globally?

4. After recent wage increases, service prices have accelerated, is this cause for concern?