China inflation picks up to 5.5%

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NEW YORK (CNNMoney) -- China's rapid pace of inflation picked up again in May, even as the government has stepped up its efforts to tame rising prices.

China's inflation rate rose slightly to 5.5% in May -- up from an increase of 5.3% in April, according to China's National Bureau of Statistics.

Economists were expecting the inflation rate to come in at 5.5% in May, driven by higher food prices. Food prices rose 11.7% over the past year. They were up 11.5% year-over-year in April.

Chinese food prices have been rising at double-digit rates since October, delivering a massive blow to the purchasing power of Chinese consumers.

Meanwhile, China's government has said that taming inflation to a rate around 4% is one of its key economic goals for the next five years.

As part of those efforts, the People's Bank of China has raised interest rates four times since October and hiked the amount of reserves it requires banks to hold.

Inflation in China could be bad news for American consumers since it drives up the costs for items imported to the United States.

But higher prices for Chinese products could also make goods made in the U.S. more competitive.

Inflation in China appears to be one reason why China's overall exports have slowed a bit as of late. China's government reported last week that exports rose 19.4% year-over-year in May, down from an increase of nearly 30% in April.

Higher prices in China could also help the job market in the U.S. Inflation raises Chinese wages, making it less attractive for American firms to outsource jobs to the country.