Inflation in China rose 2.3 per cent from March last year to March this year, according to government figures.
Beijing has taken steps to try to increase inflation in recent months, while the country’s economy is characterised by the trade conflict with the US and low global growth.
Thursday’s figures show that the measures seem to work. Inflation of 2.3 per cent from March last year to March this year is considerably higher than the level measured from February last year to February this year, as the figure was 1.5 per cent.
Inflation figures are in line with analysts’ expectations. However, it is warned that the world’s second largest economy is still not in the right direction.
“Higher food and oil prices gave rise to inflation last month, but the wider price pressure remains subdued,” says Julian Evans-Pritchard of Capital Economics.
The International Monetary Fund (IMF) upgraded its growth forecast for China from 6.2 to 6.3 percent this year on Tuesday. The IMF points out that the government’s stimulation measures are starting to work.
Growth in China’s economy fell to 6.6 per cent last year, the lowest level in nearly three decades. Beijing last month stated that this year’s target is a growth of between 6 and 6.5 per cent.
This week, China and the United States have held a new round of trade talks in Washington. US Treasury Secretary Steven Mnuchin says progress has been made in several areas, including agreement on mechanisms to provide a basis for a future trade agreement.