China inflation 1.5 percent in January

The January rise in the Consumer Price Index, the main gauge of inflation, was largely blamed on the 3.7 percent rise in food prices, a main gauge of inflation, the National Bureau of Statistics said.

Separately, the bureau also reported that the January Producer Price Index, which measures inflation at the wholesale level, rose 4.3 percent year-on-year, compared with 1.7 percent in December.

China Daily, quoting industry observers, said heavy snow in the first two weeks of this year contributed to the January rise in food prices.

The newspaper said the lower January inflation rate compared with December of last year has reduced the pressure to raise interest rates.

Chinese Cabinet Economist Ba Shusong said the central bank might hike the interest rate when the CPI increase exceeds 2.25 percent, which is the current one-year benchmark deposit rate.

The PPI trend, said Chinese Securities Co. analyst Wei Fenchun, indicates a rapid rise in the profits of enterprises. Manufacturer's prices of crude coal, aluminum, lead, zinc and copper all have jumped sharply from the previous year.

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