In January, China's headline consumer price inflation hit 0.8%, then it bounced back up to 1.4% in February.

Board member and economics professor Qian Yingyi told Reuters that policymakers would be watching inflation figures in March and April to see whether deflation was worsening.

"If it's stable between 1 and 2%, it's very, very comfortable," he said. "But above 2%, there is a little bit of worry about inflation. Below 1 (percent), there will be bit of a worry about deflation."

Until then, all the Wall Street analysts warning of the deadly combination of debt and deflation, everyone calling for intervention with every bad data point — they can stop wasting their breath.

Wall Street has been talking about this issue in earnest since last fall. Its argument is pretty basic. The Chinese economy is slowing as it transitions from one based on investments to one based on consumption. Until consumers have enough purchasing power, China's corporations make less money.