Chinese consumer inflation rebounded slightly in March leaving policy makers less room to ease monetary conditions to prop up the slowing economy even though persistent price rises appear largely under control.

The benchmark consumer price index increased 3.6 per cent last month from a year earlier, mostly as a result of higher food and energy prices, according to government figures released on Monday.

That was higher than the 3.2 per cent increase in the index in February, but well below January’s 4.5 per cent rise and also lower than the average reading of 3.8 per cent for the first three months of the year. February’s low reading was mainly due to the distorting effect of the Chinese Lunar New Year holiday, which came unusually early this year, and analysts said inflation remains a concern to officials, who are wary of loosening policy too soon.