China’s inflation rises above 1%

China’s inflation rebounded to above 1% in February, driven by a faster rise in food costs.

Data today showed consumer prices rose 1.4% in February from a year earlier, up from January’s 0.8% rate. Food prices rose 2.4%.

Low inflation gives Beijing room to stimulate the slowing economy with less danger of triggering a politically dangerous rise in living costs.

Julian Evans-Pritchard, of Capital Economics, said in a report that February’s seasonal pick-up in food inflation will likely prove short-lived.

Capital Economics still expects inflation to fall back below 1% in coming months

Producer prices, measured as goods leave the factory, fell 4.8% from a year earlier, extending a long period of declines due to excess production capacity in many industries.