China's consumer price inflation climbed to its highest level in seven months in September, data from the National Bureau of Statistics showed Monday, dampening prospects for an easier monetary policy to support economic growth.

At the same time, the country's industrial producer prices fell for a nineteenth consecutive month in September, but the pace of decline has slowed since August, according to another report from the statistical office.

The CPI inflation rate rose to 3.1 percent in September from 2.6 percent in August. Economists had forecast a more modest increase to 2.8 percent. The rate was the highest since February, when inflation was at 3.2 percent.

Food price inflation increased to 6.1 percent from 4.7 percent in August. Non-food prices gained 1.6 percent from a year ago compared to 1.5 percent increase reported in August.

Producer prices fell 1.3 percent year-on-year in September, slower than August's 1.6 percent decline. Economists had forecast a 1.4 percent drop. The rate of decline has been easing since May this year.

Data published by the General Administration of Customs on Saturday showed that the county's exports declined unexpectedly, dropping by 0.3 percent annually in September.

Imports picked up at a faster-than-expected rate of 7.4 percent in September. Economists had forecast 7 percent growth. On a monthly basis, exports fell 2.6 percent, while imports rose 5.1 percent.

The trade balance showed a surplus of $15.21 billion, less than the August surplus of $28.5 billion and notably lower than the $26.25 billion surplus expected by economists.

China's economic growth moderated to 7.5 percent in the second quarter from 7.7 percent in the first three months of the year. The statistical agency is set to releases its third-quarter gross domestic product data on October 18 and economists expect growth to quicken to 7.8 percent.

Earlier this month, several international institutions have downgraded their growth outlook for China, as the government's efforts to restructure the economy is beginning to weigh on growth.

In its latest World Economic Outlook report, the International Monetary Fund lowered its growth predictions for the Chinese economy, and now expects the gross domestic product to grow 7.6 percent this year and 7.3 percent the next year.

The Asian Development Bank expects growth to moderate to 7.6 percent in 2013 and to 7.4 percent in 2014. Meanwhile, the World Bank projects growth of 7.5 percent this year and 7.7 percent for 2014.

RTTNews