China Inflation Hits 4.9% in February

China said inflation remained high in February, fueling further doubt about the government's ability to tackle what officials have called their main economic priority this year.

The consumer-price index in the world's second-largest economy rose 4.9% in February from the same month last year, the National Bureau of Statistics said on March 11. Food prices alone rose 11 percent in February.

China's February economic data are distorted by the timing of its Lunar New Year holiday, which fell earlier in the month this year than in 2010. The holiday, China's biggest of the year, alters spending patterns, especially for food, limiting the ability of economists to extrapolate longer-term trends.

China's producer price index, a measure of pipeline inflation pressures, rose 7.2% from a year earlier, up from January's 6.6% rise and higher than expectations for a 7% rise.

China Inflation Hits 4.9% in February, WSJ
3/11/2011 10:08:31 AM