Data from the National Bureau of Statistics in China showed that the annual consumer price index, which measures inflation, was stable at 0.9% in February, unchanged compared to January’s reading, as the inflation rate in major factories recorded the slowest pace of growth in eight months.

On the other hand, the Producer Price Index (PPI) in China rose to 8.8%, compared to an increase of 9.1% in January, while expectations had indicated a decline to 8.5%.

Inflation in China in the first half of February was affected by the Lunar New Year celebrations, which reduced the demand for raw materials and limited price hikes, but in light of the Russian-Ukrainian war, high global commodity prices and supply disruptions, inflation is expected to return to the rise in the March reading.