BEIJING, April 11 (Reuters) - China's consumer prices in

March rose for a second straight month while producer price

deflation persisted, pointing to still weak demand despite signs

that the struggling economy is regaining some momentum.

The consumer price index (CPI) grew 0.1% in March from a

year earlier, against a 0.7% rise in February, data from the

National Bureau of Statistics (NBS) showed on Thursday. That

compared with a 0.4% increase predicted by economists in a

Reuters poll.

CPI fell 1.0% month-on-month, cooling from a 1% gain in

February and worse than a 0.5% drop forecast by economists.

The producer price index (PPI) fell 2.8% in March from a

year earlier, widening a 2.7% slide the previous month, and

matching a forecast 2.8% fall.