China’s March consumer price index (CPI) reached a year-on-year increase of 2.4%, up from 2.0% in February, according to data released by the National Bureau of Statistics.
The inflation was mainly driven by a 4.1% increase in food price.
The producer price index (PPI) was 2.3% lower year-on-year, following a 2% decline in February, according to official figures.
"As the PPI inflation remained negative for more than two years and PPI is an important leading indicator for CPI, the deflation risk is looming over the horizon," writes Liu Li-Gang, chief economist of Greater China at ANZ.
He says CPI inflation could pick up in the second quarter, but downside risks will remain as the economic activities maintain a relatively weak momentum.
