Inflation Falls Short of Forecasts

(Caixin Online) China's consumer price index (CPI) rose by 1.5 percent year-on-year in January, a 0.4 percentage point decrease from December 2009, indicating a slower-than-expected inflation rate.

Ha Jiming, chief economist from China International Capital Corporation, said that mild weather since January alleviated a rise in food prices.

However, China should still watch inflation rates carefully against the backdrop of robust economic growth and a loose lending policy, said Qiao Hong and Song Yu, economists from Goldman Sachs China.