China Inflation Rises to 2.3% in February

China’s inflation accelerated to 2.3 percent in February, driven by a jump in food prices, but stayed below the government’s official target for the year.

The consumer price rise reported Thursday was up from January’s 1.8 percent. Food prices surged 7.3 percent, up from the previous month’s gain of 4.1 percent.

Inflation is forecast to edge higher this year, though analysts say it is unlikely to reach levels that would hamper plans by Chinese leaders to boost government spending to shore up slowing economic growth.

The government last weekend set this year’s official inflation target at 3 percent.

“The jump in food inflation last month was seasonal and will prove short-lived,” Julian Evans-Pritchard of Capital Economics said in a report. “Price pressures elsewhere are likely to pick up in coming quarters but should stop short of becoming a constraint on further policy easing.”

via Mainichi

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza