February inflation lower than market expectation

China's consumer price index rose by 2.3 percent in March from a year ago. It was unchanged from February but lower than market expectations. Analysts said prices will not pose a serious challenge to policymakers, and the situation will benefit the country's efforts to keep growth on track.

Food prices, which account for about one-third of the CPI, rose by 7.6 percent year-on-year, according to the National Bureau of Statistics on Monday. Meat prices rose by a sharp 16.5 percent, pushing overall prices up by 0.69 percentage points.

Pork prices have risen strongly recently, fueling expectations that the CPI will grow faster in March. But prices of other items, such as tobacco, eggs, vegetables and fruit, dropped by 0.4 percent, keeping overall price levels stable.