BEIJING ( TheStreet) -- The People's Bank of China said Wednesday it will raise benchmark deposit and lending rates by 0.25% in an effort to cool inflation. It's the third rate increase this year from the PBOC. The one-year yuan lending rate will be raised to 6.56% from 6.31%, and the one-year yuan deposit rate will be hiked to 3.5% from 3.25%. >P/>Inflation in China hit a 34-month high of 5.5%. -- Written by Joseph Woelfel >To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: email@example.com.