Consumer inflation is mild in March as producer prices cool

China's consumer inflation remained mild in March, rising only slightly month-on-month, easing concerns of a possible jump in inflation partly from increases in producer prices making their way through the economy.

China's consumer price index rose by 0.90 percent in March, up only 0.10 percentage points from 0.80 percent in February, the National Bureau of Statistics said on Wednesday. Falling food prices helped keep consumer inflation in check, the agency said.

"The March reading of the CPI will reverse market expectations (for higher consumer inflation)," said Jiang Chao, analyst of Haitong Securities. "In April, consumer inflation may rise by 1.1 percent year-on-year and remain stable."