China's inflation rebounded in January, adding to pressure on the communist government to control surging living costs.
Data on Thursday showed consumer prices rose 4.5 percent in January, up from December's 4.1 percent rise. Food prices rose 10.5 percent.
The new acceleration in price rises came after a monthslong decline from July's 37-month high of 6.5 percent. It defied forecasts by analysts who expect inflation to decline steadily in coming months.
The surge in inflation is politically dangerous for the ruling Communist Party because it erodes economic gains that underpin the party's monopoly on power.
”The consensus was four percent, so there is still inflation pressure in China,” explained Lun, Managing Director of Lyncean Holdings.
Food prices jumped 10.5 per cent, accelerating sharply from December's 9.1 per cent rise and driven by 25 per cent gain in the cost of pork, the staple meat in China.
The People's Bank of China eased lending curbs in December to promote growth in the slowing economy. But the unexpected jump in the cost of living could make the central bank wary of carrying out further steps to ease credit.
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