Key inflation gauge edges down on monthly basis

The country's consumer price index, a main gauge of inflation, rose 2.1 percent year-on-year in March, compared with 2.9 percent for February, the National Bureau of Statistics said on Wednesday. Analysts said the month-on-month decline indicates that high inflation may be unlikely this year, which will prevent policymakers from tightening their monetary policy stance.

On a month-on-month basis, CPI declined 1.1 percent, according to NBS data.

The month-on-month drop was due to the ebb of holiday factors, which pushed up demand in February, said Sheng Guoqing, a senior statistician of the NBS, in a statement.