Well, the reason why markets reacted that way is because the lower figure is partly the beneficiary of a previously announced change--effective January 2011--in the weight of items included the CPI basket calculation. Not to mention food prices soared 10.3% after rising 9.6% in December - Grain escalated 15.1%, fresh eggs climbed 20.2%, and fruit spiked 34.8% from a year ago, according to the official report. Moreover, the worst drought in 60 years hitting China northern “wheat belt” will only putting more upward pressure on the already rampant food price inflation, although Beijing so far has downplayed it.