China - Chinese markets recover after China records February deflation

China’s CPI dropped 1.6 percent in February from last February, as food, clothing and fuel costs declined. Biggest drops were recorded in pork prices, 18.9 percent lower than last February. This is the first negative CPI in China since 2002, however it is likely to have been influenced by high prices over the Chinese New Year holiday in 2008, which fell in Februay last year but in January this year. The CPI may rise to give a more representative figure in March.