China's Jan inflation rises 1.8% on holiday demand

Beijing

CHINA'S inflation picked up in January due to the New Year holiday, but deflationary pressures remained with the producer price index still in negative territory.

The consumer price index was up 1.8 per cent last month against 1.6 per cent in December, its biggest rise in five months, but analysts say the pick-up is seasonal and does not indicate an improvement in domestic demand.