China Inflation Picks Up in February While Factory Prices Keep Falling

China's consumer prices rose 0.7% year-on-year in February, indicating improving domestic demand after 6 months of declines
Analysts expect inflation to remain reasonable and the economy to continue recovering with policy support
Factory-gate prices dropped 2.7% year-on-year in February due to offseason effects and weak external demand
Policies to boost consumer spending, investment, and lending are expected to support growth
The central bank governor said there is room for further cuts to reserve requirement ratios and benchmark rates to keep prices stable