China's consumer price index climbed by 2.1 percent year-on-year last month, faster than the rate recorded in June. Despite the quick growth in consumer prices, the growth in producer prices slowed to only 4.6 percent compared to the same period last year, and also marked a slightly slower growth month on month. Chen Tong reports.

What pushed up consumer prices in July was the non-food sector, which recorded a year-on-year growth of 2.4 percent. Among the various categories in the non-food sector, prices in healthcare and pharmaceuticals saw the highest year-on-year growth, at 4.6 percent, followed by transportation and communications, and living expenses.

JIAO HONGMEI INDEPENDENT COMMENTATOR "July's CPI growth was beyond market expectations. But July is a peak season for summer vacations, and this is always a seasonal factor driving up the CPI. Tourism made up the second largest contribution to consumer prices."

China's factory gate prices saw slower growth in July, however. Sector-wise, ferrous and nonferrous metals smelting and pressing saw slower producer price growth. Some have expressed concern about whether the intensifying trade friction between China and the United States could further reduce demand for industrial products, but experts say the growth rate of the PPI is still primarily affected by commodity prices.

LIU XUEZHI, SENIOR ANALYST BANK OF COMMUNICATIONS "The trade disputes between China and the United States won't have a significant impact on industrial products. The PPI is still primarily affected by fluctuations in international commodity prices, and since there was significant growth in their prices last year, we expect growth in the PPI to narrow in the second half of this year."

Despite the overall narrowing of July's PPI growth, major sectors were up. Those included prices for oil and natural gas exploration, construction materials and petroleum and coal processing, which all grew at double digits compared to the same period last year. Chen Tong ICS for CGTN Shanghai.