OREANDA-NEWS. April 17, 2013. Most of the drop in inflation can be put down to food prices, said Yao Wei, an economist at Societe Generale.

Rises in food prices have been moderating, up 2.7% year to year in March after a 6% year-to-year rise in February. "For now, we can say that inflation is still not a threat at all, and the central bank only needs to maintain stable liquidity," said Ms. Yao.

"For the first half, China will be able to maintain inflation below 3%."