BEIJING (AP) — China’s inflation declined in March,easing pressure on consumers but fueling
questions about the strength ofrecovery in the world’s second-biggest economy.Government dataTuesday showed
consumer prices rose 2.1 percent, down from the previousmonth’s 3.2 percent and well below the official
target of 3.5 percentfor the year. Wholesale prices declined by 1.9 percent compared withlast year.Mixed
data show the world’s second-largest economy islimping out of its deepest slump since the 2008 global crisis
but moreslowly than Chinese leaders want. Analysts say the rebound could bevulnerable to a downturn in
investment or trade.Economic growthrose to 7.9 percent in the three months ending in December, up from
theprevious quarter’s 7.4 percent. Analysts say the recovery is beingpropped up by government spending and
bank lending, while consumerspending is growing slowly.Lower inflation will give policymakers"more room
to maneuver" to stimulate growth if industrial productionfigures due out next week show activity weaker
than expected, saidGoldman Sachs economists in a report.The decline suggests consumer demand is still
lackluster despite the growth rebound."Wehave yet to see a surge in final demand ripple throughout the
economy,"said IHS Global Insight analyst Alistair Thornton in a report. "This isnot a healthy
recovery."Figures early in the year often aredistorted by the Lunar New Year holiday. Inflation fell to
2 percent inJanuary, then spiked to a 10-month high in February as vegetable costsrose due to cold weather
and families stocked up on gifts and food forbanquets.The government’s growth target for the year is
7.5percent, above Western levels but well below China’s double-digit ratesof the past decade.Chinese leaders
say they want to nurture moreself-sustaining growth driven by domestic consumer spending and reducereliance
on exports and investment.Manufacturing accelerated inMarch but was weak, according to the China Federation
of Logistics andPurchasing, an industry group. Its purchasing managers index rose to50.9 from February’s
50.1 on a 100-point scale on which numbers above 50indicate an expansion.Goldman also saw a possible
inflationimpact from newly installed President Xi Jinping’s orders to CommunistParty officials to cut back
spending on banquets and other frills in aneffort to mollify public anger about corruption."Lower
consumerinflation was also likely helped by the anti-corruption campaign whichtends to lower prices of
dining out and overall food prices," said thebank’s economists in a report.In a reflection of intense
interestin China’s economy, the statistics bureau said its website wastemporarily offline following
Tuesday’s inflation announcement when thenumber of visitors spiked to 20 times the normal level. The bureau
saidit was looking into how to improve its technology to prevent futureoutages.___National Bureau of
Statistics (in Chinese): www.stats.gov.cnCopyright 2013 The Associated Press.