China consumer prices rise in February 

BEIJING

Chinese consumer prices rose in February for the first time since August, data showed on March 9, bucking a months-long stretch of deflation that compounded the country's myriad economic woes.

The world's second-largest economy posted some of its lowest growth in decades last year and is battling a prolonged property sector crisis and soaring youth unemployment.

But in a rare bright spot, the consumer price index rose 0.7 percent last month, according to Beijing's National Bureau of Statistics (NBS) - the first increase since August.

The positive data comes as senior officials meet in Beijing for the annual "Two Sessions" of China's parliament and its top political consultative body, in gatherings that have been dominated by the economy and national security.

High among those issues has been deflation, which China entered last July for the first time since 2021.

Consumer prices traditionally see a boost during the Chinese New Year period, also known as Spring Festival, which fell in February this year.

China's sinking prices are in stark contrast with the rest of the world, where inflation remains a persistent bugbear, forcing central banks to ramp up interest rates.

Given the holiday factor, one analyst cautioned against seeing the latest figures as suggesting China was no longer struggling with deflation.

"I think it is too early to conclude that deflation in China is over," Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said.

"Domestic demand is still quite weak. Property sales of new apartments have not stabilised yet," he explained.