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

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