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China inflation rebounds to above 1 percent, driven by rise in food costs


BEIJING — China's inflation rebounded to above 1 percent in February, driven by a faster rise in food costs.

Data on Tuesday showed consumer prices rose 1.4 percent in February over a year earlier, up from January's 0.8 percent rate. Food prices rose 2.4 percent.

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 percent in coming months

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

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