Inflationary pressures in China persisted in February, with consumer prices rising 4.9 per cent from a year earlier and producer prices rising 7.2 per cent, the fastest increase since October 2008.
Politically sensitive food prices, which have a disproportionate impact on low-income households, accelerated to 11 per cent in February from a year earlier, up from 10.3 per cent in January.
But China’s central bank governor expressed confidence that Beijing would be able to rein in prices and keep the annual consumer inflation rate below the government’s target of 4 per cent for the whole year.
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