Consumer inflation picks up

Lingering industrial deflation in June still a cause for concern

China's consumer inflation remained at a low level while industrial deflation lingered in June, raising speculation that policymakers may encourage more bank lending to shore up manufacturing and prevent risks arising from the stock market turbulence.

The Consumer Price Index, the main gauge of inflation, climbed to 1.4 percent in June from 1.2 percent in May, driven largely by the 1.9 percent year-on-year growth in food prices, the National Bureau of Statistics said on Thursday.