CPI rises to near two-year high of 2.3%

China's consumer inflation jumped to 2.3 percent in February, its highest in nearly two years, a positive sign of demand that helped ease fears that China could fall into a deflationary trap.

The Consumer Price Index beat expectations to grow at its fastest pace since July 2014, up from January's 1.8 percent gain, the National Bureau of Statistics said on Thursday. Translated into month-on-month growth, the inflation index expanded 1.6 percent, its fastest pace since March 2008.

The uplift is mainly food-driven and thanks to the traditional Spring Festival, which fell in February. The festival drove up demand for food, as pork prices jumped 25.4 percent year-on-year, and vegetables rose a hefty 30.6 percent. Unusual cold weather caused a tightening in the supply of vegetables, according to economists.