The National Bureau of Statistics (NBS) announced at 10am this morning that China's consumer price index (CPI), a main gauge of inflation, rose to 104.9, up 4.9 percent in January of this year.

According to the China Securities Journal, the newly released figures reflect a change in the CPI structure. Weightings for housing increased by 4.22 percentage points while food weightings decreased by 2.21 percentage points. The change is part of a regular five-year adjustment of CPI weightings.

According to the NBS, CPI rose 4.8 percent in urban areas and 5.2 percent in rural areas. Commodity prices rose 1.0% on average in January.

The producer price index (PPI), another measure of inflation at the wholesale level, rose 6.6 percent.

Analysts are optimistic that there will be 2 more interest rate hikes at the most in 2011.

China's Dacheng Fund Management Company maintains that CPI will continue to rise although the CPI growth rate peaked in November of last year at 5.1%. They also maintain that the economy will strengthen in the second half of 2011, and that inflation will ease.

Dacheng Fund also believes that economic growth is better than expected at home and abroad, and that inflation worldwide is lower than expected and liquidity levels are returning to normal. The macroeconomic climate is good, and the above factors will have a positive impact on the market.

Researchers believe that global economic recovery has strengthened exports, and there is little likelihood of another interest rate hike in the near future. Although many stocks fell in January, researchers believe they are likely to rebound.

Keep reading below for a breakdown of the CPI numbers:

The average price of food items rose 10.3 percent. Meat prices rose 15.1 percent and poultry prices rose 10.9 percent. Egg prices were up 20.2 percent. The price of fruits and vegetables increased 34.8 percent and 2 percent, respectively.

Alcohol prices were up 4.3 percent while the prices of tobacco rose 0.4 percent.

The price of clothing items including shoes fell 0.2 percent. The prices of shoes fell 2.8 percent.

Prices for non-food items rose 2.6 percent, and the prices of services and consumer items increased by 5 percent and 4.6 percent, respectively.

Prices for domestic services and household maintenance rose 11.4 percent.

In January, the prices of personal care and hygiene products rose 3.2 percent. Prices of pharmaceuticals increased 0.6 percent and prices for Chinese herbal medicines increased 11.3 percent. The price of medical insurance went up 0.8 percent.

Prices for transportation and communication services fell 0.1 percent. Prices for transportation equipment fell 1.3 percent while the price of fuel rose 7.0 percent. Vehicle maintenance costs and the price of inter-city transport rose 2.3 percent and 3.7 percent, respectively. The cost of urban public transport rose 0.7 percent.

The price of education rose 1.7 percent and recreation costs increased 1.5 percent. The cost of tourism rose 7.6 percent.
Housing prices rose another 6.8 percent.

Prices of water, electricity, and fuel prices were up 3.9 percent while prices of construction materials rose 4.3 percent. The cost of rent increased 7.1 percent.