China consumer prices see quickest jump in three years

BEIJING, Mar 09 (AFP): China's consumer prices rose last month at the quickest pace in three years, official data showed Monday, thanks to the Lunar New Year break and a rally in oil prices and Middle East tensions rose.

Beijing wants to make domestic consumption the main driver of its economic growth and shift away from traditional drivers such as exports and manufacturing.

But results have been muted, with people unwilling to spend as the economy lags.

The consumer price index, a key measure of inflation, came in at 1.3 per cent in February, according to the National Bureau of Statistics.

That marked the biggest year-on-year jump since January 2023, when prices rose 2.1 per cent, and topped the 0.9 per cent increase forecast in a Bloomberg survey.

It also marked an acceleration from the 0.2 per cent rise recorded in January and December's 0.8 per cent.

However, it is still well below the government's two per cent target for the year.

Local authorities across China had vowed to encourage domestic spending ahead of the Lunar New Year holiday.