China inflation rises to 0.8% but stays below target

China's consumer inflation rose to 0.8% in August but stayed below Beijing's current 2% target, National Bureau of Statistics data showed on Wednesday.

The consumer price index was up from 0.5% in July and matched the forecast in a Bloomberg survey of economists. China's consumer inflation has remained below the current target for more than three years and has slipped into negative territory several times during that period.

Producer prices also rose, with factory-gate prices up 3.8% year on year in August, compared with 3.5% in July. That was above the 3.6% forecast in the Bloomberg survey.

The figures came as China faces weak domestic demand despite stronger exports and growth in some high-tech sectors. Beijing is targeting economic growth of 4.5% to 5.0% this year. The economy grew 4.3% in the second quarter, the weakest pace in more than three years.