Inflation rises to 2.4 pct in April

China's consumer inflation slightly accelerated in April, but still within a mild range that leaves room for policymakers to fine-tune policies to support the tepid economic recovery, official data showed Thursday.

China's consumer price index (CPI), a main gauge of inflation, grew 2.4 percent year on year in April, up from 2.1 percent in March but well below the year's control target of 3.5 percent, according to the National Bureau of Statistics (NBS).

The rise is largely in line with the market forecast of around 2.3 percent.

The NBS attributed the gain mainly to an unusual increase in vegetable prices during that month as low temperatures and scarce rainfalls disrupted supplies.

In April, food prices, which account for nearly one-third of weighting in China's CPI, increased 4 percent year on year, with the prices of vegetables rising 5.9 percent, NBS data showed.

On a monthly basis, consumer prices in April edged up 0.2 percent.

Liu Ligang, chief economist with Greater China at ANZ Bank, expects the CPI growth in May to stay below 3 percent and gradually pick up pace in the latter half of the year due to a low year-ago comparison base.

"But given the subdued momentum in the economic recovery, the CPI will not see rapid gains this year," he added.

The country's economic growth unexpectedly dipped to 7.7 percent in the first quarter, falling short of market expectations and suggesting a continued tepid economic rebound for the world's second-largest economy.

While analysts largely believe inflationary pressures are not a cause for concern in the short term, Thursday's data regarding prices at factory gates demanded more market attention.

China's producer price index (PPI), which measures wholesale inflation, fell 2.6 percent year on year in April, marking the 14th straight month of decline and the steepest drop in six months that pointed to continued weak market demand.