August inflation stays unchanged at 5.3%

China's inflation rate in August stuck at 5.3 percent year-on-year, matching July's figure as food prices continue to soar.

From January to August, the consumer price index rose 4 percent compared to the same period of 2003, reported China Radio International, citing figures released by the State Statistics Bureau.  

The August outcome matched last month's level, which was the highest since February 1997, and is likely to add to pressure on the central bank to raise interest rates.

Many economists believe there is little doubt that the central bank needs to raise rates as the bank has warned it might do if inflation surpassed five percent, which first happened in June.