China's January inflation slows to 2%

However, analysts say price pressure will build in the coming months.

The downward trend in January will be temporary. The country's inflation will pick up steam in February, with the growth rate accelerating to 2.7 to 2.9 percent, the China International Capital Corporation (CICC) said in a report.

The company's view was backed by Tang Jianwei, senior analyst at the financial research center under the Bank of Communications.

China's inflation will enter a preliminary upward phase in 2013, Tang said.

The country's economy has been steadily recovering and resurgent demand will drive up prices. Pork prices, which have a significant influence on the CPI, will regain momentum in 2013, he said.

Monetary quantitative easing implemented in the United States, Europe and Japan, together with China's rising labor and land costs, will all affect the country's inflation this year, Tang added.