China's consumer price index rose 0.7% in February compared with the previous year, according to the National Bureau of Statistics, ending a period of falling prices in the world's second largest economy. Bloomberg reports this.
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The growth was higher than analysts’ estimates , who predicted an increase of 0.3%.
At the same time, producer prices fell by 2.7%, continuing the longest streak of declines.
Part of the increase in prices was facilitated by the celebration of the Chinese New Year.< /p>
According to National Bank of China chief statistician Dong Lijuan, the holiday travel boom has driven much of the rise in consumer prices. However, the decline in producer prices is partly due to the slowdown in industrial activity during the holiday period, Dong said.
“I think it is too early to conclude that deflation in China is over,” said the president and chief economist of one of the of the first hedge funds in mainland China, Zhang Zhiwei.
The Chinese government intends to stimulate economic growth at 5% in 2024.
Among other incentives, the authorities have developed detailed plans to issue ultra-long special sovereign bonds for 1 trillion yuan ($139 billion) and raising additional unspent funds since the end of last year.
Politicians have set an inflation target of 3%.
Economists question the government's ability to stimulate demand. The real estate sector remains vulnerable, and consumers are increasingly investing in savings rather than spending.
