CPI sees slowest pace in two years
China’s consumer price index, a key gauge of retail inflation, rose 0.8 percent last month, the slowest growth in two years, due to the distortion caused by the timing of the Chinese Lunar New Year.
Analysts said the low consumer inflation reduces the possibility of China tightening its monetary policy and leaves room for policymakers to focus on risk prevention.
Ample supply of vegetables and sagging demand for meat and other consumption items after the Lunar New Year holiday led to a “marked drop” in food prices in February, said a statement from the National Bureau of Statistics.
The high base of calculation last February, in which the Chinese New Year took place, contributed to the low reading last month, the statement said.
Core CPI, which excludes energy and food prices, remains stable, said the bureau.