Chinese inflation edges up.

China's annual inflation rose to 2.7% in June from 2.5% in May, coming in slightly above estimates of 2.5%. However, the deflation in the PPI at China's factories continued, although it slowed to 2.7% from 2.9%. "It is worrying to see the Chinese producer price index remain in deflationary territory," says BNP's Chi Lo. "It is the internal weakness in the Chinese economy that has been producing this deflationary pressure on the wholesale price level."