Food costs increase Chinese inflation

Chinese inflation jumped in February, driven by higher food costs.

Consumer prices were up 2.7% last month from a year ago, against January's rate of 2.2%, the statistical office said.

While there were still concerns about China's economy overheating and the growth of an asset bubble, a rate rise was probably not needed, analysts said.

They added that inflation is set to slow later this year as global food prices drop and as government moves to slow the economy start to take effect.

"We think food prices in China are being driven by global food prices, which China can't do anything about," said Paul Cavey, an economist with Macquarie Securities. Read more