China's general inflation level will rise for the whole year, with the CPI at 2.6 percent, well under the government's target, Li Xunlei, chief economist of Zhongtai Securities, said, adding "mild inflation will be boon for consumption."

Besides, the stabilizing economy will give policymakers more room to control prices, Yin said.

Exports and imports staged strong rebounds in January, while official manufacturing purchasing managers' index remained in expansionary territory for six consecutive months.

The central government will announce its annual CPI target for 2017 in its work report during the upcoming parliamentary sessions in March, which is expected to remain around 3 percent.

Inflation and unemployment data are significant indicators for Chinese authorities to examine the country's economic health, in addition to the GDP.

The Chinese economy grew 6.7 percent year on year in 2016, the lowest reading in nearly three decades, but within the government's target range.

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