China's inflation rebounds in January to 4.5 pct

February 8, 2012 - 9:05 PM

BEIJING (AP) — China's inflation rebounded in January, adding to pressure on the communist government to control surging living costs.

Data on Thursday showed consumer prices rose 4.5 percent in January, up from December's 4.1 percent rise. Food prices rose 10.5 percent.

The new acceleration in price rises came after a monthslong decline from July's 37-month high of 6.5 percent. It defied forecasts by analysts who expect inflation to decline steadily in coming months.

The surge in inflation is politically dangerous for the ruling Communist Party because it erodes economic gains that underpin the party's monopoly on power.