However, the rebound of the CPI will not much affect the easing bias of the central bank as the figure remains below the government's 2019 target of 3 percent and the acceleration of CPI inflation comes mainly from the pork prices rather than a general rise in all fields, Nomura said.

In a breakdown, non-food prices gained 1.8 percent, 0.1 percentage points higher than that in February.

Gasoline and diesel prices went up 3.6 percent and 4 percent respectively, while prices of agency services, plane tickets and hotel accommodation were dragged down by declining travel demand in comparison with February when there was a Spring Festival travel rush.

With food and energy prices deducted, core CPI growth remained unchanged from February at 1.8 percent, Nomura noted.

Producer prices

Thursday's data also showed China's producer price index (PPI), which measures costs of goods at the factory gate, rose 0.4 percent year on year in March, picking up from the 0.1-percent flat growth in February.

This marked the first acceleration in PPI growth since June 2018, with the market fear over deflation risks largely abated, according to an analysis of the Bank of Communications.

On a month-on-month basis, the index rose 0.1 percent in March but contracted 0.1 percent in February.

Nomura said that global oil price increases were likely a big driver of the rise in China's PPI inflation.

Analysts with the CITIC Securities Co. Ltd. expected the PPI to continue expanding in April on the low-base effect.

Considering the high producer price base last year and China's reducing VAT rates, however, the PPI may contract in May and June of 2019, they said. 

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