China's inflation rate hit a 10-month high in February, as Lunar New Year festivities drove up food prices. Consumer prices rose 3.2% from a year earlier, with food prices up by 6%. Likewise exports rose more than expected in February, probably indicating that the Chinese economy could be in an upturn.
China’s consumer-price inflation eased to a 29-month low in June, giving Premier Wen Jiabao more room to relax economic policies after the second interest-rate cut in a month. The consumer price index rose 2.2% percent from a year earlier, the National Bureau of Statistics said in Beijing. Producer prices dropped 2.1%.
China's inflation rebounded slightly in March after logging an extremely low growth in February, backing lingering uncertainty regarding the country's ability to contain price rises.