Manufacturing activity in China rebounded last month after three consecutive months of slowdowns, according to the latest data.
The purchasing managers index (PMI) rose to 53.4 in March from 52.2 in February, according to China’s National Bureau of Statistics.
A reading above 50 indicates the sector is expanding while a reading below 50 means it is contracting.
The CFLP said its input price sub-index, an indicator of inflation pressures, eased to 68.3 from 70.1 in February.
"Investment growth remained high in the January-February period, while growth in exports and consumption both declined," CFLP analyst Zhang Liqun said in a statement.
The Chinese government has raised interest rates three times since October and hiked bank reserve requirements three times already this year to control soaring prices and rein in inflation.
Consumer inflation remained high at 4.9 per cent in February, above Beijing's 2011 target of four per cent.
Economists expect it to hit five per cent this month, reports the official Shanghai Securities News.