China’s consumer price index (CPI), a key measure of inflation, edged up 0.1% year on year in March, according to official data released by the National Bureau of Statistics (NBS) on Thursday. On a monthly basis, the CPI decreased by 1%, influenced by seasonal factors following the Spring Festival holidays.
Core CPI, which excludes volatile food and energy prices, increased by 0.6% year on year, indicating a moderate rise in underlying inflation pressures.
“The slowdown in both yearly and monthly CPI growth rates can be mainly attributed to the seasonal decrease in demand for food and travel services after the recent Spring Festival,” explained Bruce Pang, chief economist of JLL Greater China.
The producer price index (PPI), which measures costs for goods at the factory gate, fell by 2.8% year on year in March, reflecting subdued input costs and easing supply pressures in the industrial sector.
Looking ahead, Pang expects the CPI to gradually return to normal levels amid improving economic conditions and effective macroeconomic policy measures. “With the economy recovering and consumption picking up, we anticipate a steady rise in consumer prices, but inflationary pressures remain moderate,” he added.
