China inflation at 4.9 per cent in February, over target

China's consumer price index rose 4.9 per cent year-on-year in February, a rate unchanged from January but above the
annual inflation target of 4 per cent, the government said Friday, according to dpa. Food prices, which make up nearly a third of the index
calculation, surged 11 per cent. Increases in food prices concern
Chinese authorities, who fear they could trigger social unrest.
Non-food prices rose 2.3 per cent in February from the same month
in 2010. China recently adjusted the method it uses to calculate its
consumer price index, reducing the weighting of food prices in the
calculation.
Central bank Governor Zhou Xiaochuan said that although inflation
was at 'a relatively high level,' it was stable. Speaking on the sidelines of the annual session of the National People's Congress, Zhou also expressed confidence in the economies of the eurozone, saying China would support European countries struggling to pay their debts.
In recent months, China has promised to buy the debt of Spain,
Greece and Portugal.