As per the National Bureau of Statistics, inflation in China rose about 1.4% year-on-year in February, but producer prices have slid again. According to NBS, the inflation in the country has been recovering from a five-year-low of about 0.8% in January.

Yu Qiumei, a senior economist at NBS, said that the growth was due to rise in travel prices and food prices during the Chinese New Year. According to the data collected by NBS, the food prices in the country rose by about 2.4% in February compared to prices last year. The data also showed that Consumer Price Index (CPI) in China climbed by more than 1% last month. In January, there was 0.3% growth in CPI.

The agency within the State Council of the People's Republic of China said on Tuesday that the producer price index declined more than 4% in the last month. It is the most negative reading since last more than five years. In January, China's Producer Price Index was down by about 4.3% and more than 3% in December 2014.

Some economists think that risk of deflation has been rising in the country. The statistics bureau of China attributed a rise of more than 1% in consumer prices. Julian Evans-Pritchard of Capital Economics in Singapore said, "February's seasonal pick-up in food inflation will likely prove short-lived and we still expect inflation to fall back below 1 percent in coming months. Nonetheless, today's inflation data suggest that downward pressure on broader prices has begun to ease".

For the current year, China has set its economic growth at about 7%. According to reports, in 2014, China's economic growth target was 7.5%. The CPI has set target around 3% for 2015, which is below 3.5% target in 2014.