Pressure grew on Tuesday for China to raise interest rates sharply in the coming months after inflation hit 6.5 per cent in August, the highest in more than a decade.

Inflation was pushed up from July’s 5.6 per cent rate by rapidly rising food prices, which were up 18.2 per cent year-on-year in August, as a shortage of pigs and pork, a staple meat, and higher feed costs buffeted grocery and vegetable markets.