The country's consumer price index rose to a year-on-year reading of 1.4 per cent in February, rising above forecasts for a 1 per cent change. In January the reading was 0.8 per cent, the lowest in five years.
However, deflationary forces remain evident in the producer sector. The country's PPI deflated at a rate of 4.8 per cent, marking a 36th straight month of falling prices. This is the biggest year-on-year fall since October 2009. A month before the rate was -4.3 per cent.
"Producer prices remain in deflation due to the persistent overcapacity in many industrial sectors. The housing slump has led to excess supplies of steel, cement, glass and other goods," said Moody's Analytics before the release. "The drop in global oil prices is also putting downward pressure on energy costs. The government's easing measures will encourage a rebound later in the year at the earliest."