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. Producer price deflation rose further, showing how the rocky economic recovery continues to fuel market demands for policy support.
The consumer price index advanced 0.7 percent in March from a year earlier, down from a 1 percent gain in February and the weakest reading since September 2021.
According to Chinese financial data provider Wind, the main driver of the fall was a pullback in food inflation, as CPI progress fell short of expectations, with the index rising 1 percent last month.
The producer price index, which reflects the prices factories pay wholesalers for products, fell six months after retreating from 2.5 percent in March to 1.4 percent in February.
The PPI retreated at the fastest pace since June 2020 after falling more than expected, with the index expected to fall 2.4 percent last month.
China’s economy shows signs of recovery
China’s economy has shown signs of recovery from the instability caused by COVID, highlighted by recent numbers from the services sector. Still, both import and export figures retreated earlier in the year. China’s economy has shown signs of recovery from the instability caused by the coronavirus, highlighted by recent numbers from the services sector. Still, both import and export figures retreated earlier in the year.
Fruit prices rose by 11.5 3 percent, year-on-year, while vegetable prices decreased by 11.15 percent.
After China’s CPI advanced by 2 percent last year, Beijing has pegged an increase of around 3 percent by 2023.
Experts said that factory-gate prices continued to firm monthly in March as prices for consumer durables fell further and supply chain shocks caused by a renewed wave of infections eased.
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