China’s consumer inflation dropped below 1 percent
China’s consumer inflation fell below 1 percent last month for the first time in more than a year. The producer price deflation has risen further, indicating that the market continues to demand policy support because of the rocky economic recovery.
The consumer price inflation rose by 0.7 percent to March, compared with a year prior. This is down from a 1 % gain in February and is the lowest reading since September 2021.
Wind, a Chinese financial data provider Wind, says the main cause of the fall was a pullback on food inflation. CPI progress fell short, and the index rose 1% last month.
After falling from 2.5 percent in March, the producer price index (which measures wholesalers’ prices for products) fell six months later to 1.4 percent.
After falling more quickly than expected, the PPI plunged at its fastest rate since June 2020. It was expected that the index would fall by 2.4 percent.
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