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China says consumer inflation edged up to a still-low 1.6 per cent year-on-year in July, which leaves room for Beijing to cut interest rates or take other steps to stimulate slowing economic growth.

The inflation rate rose from the previous month's 1.4 per cent, driven by a jump in pork prices. The National Bureau of Statistics said Sunday that costs also rose for medical care, vegetables, household services, tobacco and pre-school education.

July's consumer price index was the highest so far in 2015.

The government aims to keep consumer inflation at around 3 per cent this year.

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