China's annual inflation rate hit 3.6 percent in March, with volatile food prices leading a temporary rebound that pushed costs above expectations but left intact the view that Beijing has the flexibility to ease monetary policy to support growth. The view that a cooling economy has eclipsed inflation as Beijing's biggest near-term worry was further reinforced by surprisingly soft producer prices, which fell 0.3 percent from a year ago, sparking concerns that it indicated weakening demand. Analysts said Monday's price data suggested China's inflation is set to moderate rather than slow dramatically in coming months, ... (full story)