Mumbai: Inflation rate in China has hit its second 10-year high in August, led by a further sharp rise in pork prices. Consumer price-based inflation rate in China rose to 6.5 per cent in the year to August, up from 5.6 per cent in July, data released by the National Bureau of Statistics said.

Meat price have risen 49 per cent over the past year, caused by a shortage of pork following a series of disease outbreaks.

The pig population in China, the world''s biggest consumer of pork, has declined by 10 per cent over the past year due to major outbreaks of blue-ear disease.

Food oil cost 34.6 per cent more in August than a year earlier, eggs were up 23.6 per cent and vegetables 22.5 per cent.

Non-food prices also rose by a modest 0.9 per cent in the year to August.

China''s central bank has raised interest rates four times already this year to try to control inflation.

Inflation has exceeded the central bank''s annual target of 3 per cent for four straight months. The average rate for the first eight months was 3.9 per cent. In August last year, consumer prices rose 1.3 per cent.

China''s exports gained 22.7 per cent in August from a year earlier and imports climbed 20.1 per cent. The surplus with the US for the month also hit $15 billion.

The Chinese yuan has gained 10 per cent versus the dollar since the end of the peg to the US currency in July 2005. China has said it will move at its own pace on foreign-exchange changes.

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