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China’s Consumer Price Index (CPI) rebounded last month, with food prices moving inflation up to 3.6%.
However, analysts say the uptick will be short-lived, as weather conditions accounted for much of it.
In addition, falling food prices will influence long-term prices, which will more than offset factors like the weather and rising gas and diesel prices. In particular, the price of pork – a key component of the CPI’s food sub-index – is down 10% in the last two months.
So despite the minor move up in the CPI, economists say the deeper fall in overall producer and consumer prices still puts China on target for its 4% inflation target for 2012.