China’s inflation rises in March as Beijing shifts focus from price control

China's inflation inched up in March as Beijing shifted from reining in price rises to shoring up flagging growth in the world's second-largest economy.

Consumer prices were  up 3.6 per cent over a year earlier, up from February's 3.2 per cent but under the government's 4 per cent target for the year, according to data released today. The increase came on  a hike in state-set fuel prices and a 7.5 per cent increase in politically sensitive food costs, up from 6.2 per cent of the previous month but well below last year's double-digit rates.

Economist say China's inflation momentum was under control, or subdued, and there was nothing for them to do. He added the Chinese must be pretty content with these numbers.

Beijing shifted focus from trying to get a grip on prices to shoring up economic growth in December following easing of inflation from a high of 6.5 per cent in July. China had promised to ease lending curbs to help companies that had been battered by a global demand slump.

According to analysts' projections, economic growth that had declined steadily over the past year would decline to a new low of about 8 per cent for the three months ending in March, down from 8.9 per cent in the final quarter of 2011. Official data would be out this week.

According to forecasters a temporary acceleration in inflation was expected in March but it would be followed by a moderation over the coming months and come in under the official target for the full year.