Consumer prices up 2.7% in February

China’s consumer prices rose 2.7% in February, up from a 1.5% increase in January, AP reported. The producer price index rose 5.4% in February, up from a 4.3% in January. Higher food prices were largely responsible for the rise, although economists note that other consumer price index (CPI) components, such as transport and housing, are also increasing. Beijing has set a goal of 3% CPI inflation for 2010. In an interview with state media, China Banking Regulatory Commission head Liu Mingkang said that inflation beyond a "moderate level" was unlikely this year. China’s M2 measure of money supply showed 25.5% growth in February, down slightly from the 26% growth the month before; the official target for money supply growth in 2010 is 17%.