Update | China’s consumer price inflation rises 2.3pc – more than expected – as food prices surge, but trend ‘not likely to go on’

China’s consumer price inflation rose higher than expected in February, thanks to a surge in food prices during the Lunar New Year holiday – but economists say the upward trend is unlikely to sustain.

The producer price index extended its falling streak to 48 months – though at a slower pace – as manufacturing enterprises are still trapped in heavy debts and falling profitability amid sluggish demand.

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The consumer price index rose 2.3 per cent last month from the same month last year, hitting the highest since August 2014, according to data released by the National Bureau of Statistics on Thursday.

The statistics bureau said food prices surged 7.3 per cent last month, including a 30.6 per cent increase in the cost of vegetables and 25.4 per cent in pork prices.

The price increases were because of higher demand during the holiday period and cold weather hitting production, it said.

Economists point out that it is also necessary to consider core CPI, which excludes volatile food and energy prices.

This index rose slightly to 1.3 per cent last month, smaller than the 1.5 per cent increase in January.