If inflation was the man driver of the People's Bank of China's monetary policy, the latest update on consumer prices would not have a significant sway on interest rate direction - up or down.
China's consumer price inflation accelerated to 2.5% in the year to January from 2.1% in the previous month. While this is higher than market expectations for a 2.4% gain and the highest inflation rate since May 2014, it remains below the PBOC's 3.0% target.
Moreover, this isn't likely to last for according to the National Bureau of Statistics (NBS), much of the increase in consumer prices in January was due to higher food and travel costs heading into the Lunar New Year holiday.
Nonetheless, this indicates that Chinese producers are still unable to pass on price rises to the consumer. Producer prices in China rose by 6.9% in the year to January - the highest since August 2011 -- up from 5.5% in the previous month and representing the fifth straight month of accelerating producer price inflation.