China's consumer price index (CPI) showed signs of stabilization in March, registering a 0.1% year-on-year decline compared to February's sharper 0.7% drop, according to data released by the National Bureau of Statistics (NBS) on Thursday. Analysts attribute the mild recovery to recent stimulus measures aimed at reviving domestic consumption.
NBS statistician Dong Lijuan highlighted the resilience of core inflation metrics, with the core CPI – excluding volatile food and energy costs – rising 0.5% annually, marking a significant rebound from February's 0.1% contraction. Seasonal factors, including post-Lunar New Year demand fluctuations and global commodity price trends, continued to exert downward pressure on overall prices.
The gradual improvement aligns with government efforts to stimulate consumer activity through targeted fiscal policies and retail sector incentives. Market observers suggest the data indicates early success in Beijing's calibrated approach to balancing economic growth and price stability amid global inflationary uncertainties. The figures are particularly relevant for investors tracking Asia's largest economy, offering insights into consumption recovery patterns and monetary policy direction.
