China: Consumer price inflation rises 0.9% on year
China has set a target of around 6.5% economic growth for this year. Photograph: (Reuters)
China's Consumer Price Index rose 0.9 per cent year-on-year in March 2017, according to the country's National Bureau of Statistics Wednesday.
The rise in March is slightly higher than the 0.8 per cent interannual increase recorded the previous month, when CPI of the world's second largest economy touched a two-year record low.
However, the CPI for March remained lower than analyst expectations, who had forecast a one per cent gain, thus casting doubts on the strength of domestic demand.
In an earlier statement, FXTM analyst Lukman Otunuga said an interannual hike of one per cent or more would have been a huge stimulus, showing a recovery in demand, and boosting growth and confidence in the health of the national economy.
In terms of month-on-month data, Chinese inflation fell 0.3 per cent, as compared to the 0.2 per cent dip in February.
The bureau attributed the rise to a 1.9 per cent decrease in food prices - including a 7.9 per cent dip in vegetable prices in March as compared to February - representing a third of the Chinese index.
It also announced the Producer Price Index, which measures inflation based on wholesale prices, grew 7.6 per cent year-on-year during March, two points less than in February, its highest since 2008.
China has set a target of around 6.5 per cent economic growth for this year, Premier Li Keqiang had said while presenting the annual report on the government.
He had added the official inflation target for 2017 is three per cent, after the CPI rose two per cent year-on-year in 2016.