China inflation rose 3.2 percent in February on holiday spending, credit growth

Beijing, China (4E) – Official Chinese data shows that inflation rose at a faster than expected pace in February to reach its highest level in 10 months as rapid credit growth and holiday season spending accelerated the increase in prices.

The consumer price index (CPI) jumped 3.2 percent in February compared to the same month last year, according to the National Bureau of Statistics (NBS). It was higher compared to January’s 2.0 percent and the sharpest rise since April 2012, when it grew 3.4 percent.

The latest result is higher than analyst estimates. A survey of 14 economists by Dow Jones Newswires shows a median forecast of 3.0 percent increase in CPI.

The bureau also said that the CPI climbed 1.1 per cent month on month, which is the highest acceleration in 13 months with food prices accounting for majority of the increase.

The NBS reported that non-food inflation gained 1.9 percent year on year, while the producer price index declined 1.6 per cent.

Last year, consumer prices jumped 2.6 percent in 2012, well below the official target of 4 per cent. The Chinese government has set the inflation target for 2013 at 3.5 percent.

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