China's consumer price index (CPI) recorded a mild 0.1% year-on-year decline in March, according to data released Thursday by the National Bureau of Statistics. The dip follows February's 0.7% annual increase, signaling shifting inflationary pressures in the world's second-largest economy.
Analysts attribute the marginal decrease to seasonal factors, including post-Lunar New Year price corrections and falling fresh food costs. Pork prices, a key component of China's CPI basket, declined 2.4% month-on-month, while vegetable prices dropped 1.3%.
The modest contraction comes as policymakers balance economic recovery efforts with structural reforms. 'This data suggests contained inflationary risks, giving room for targeted monetary measures to support growth sectors,' noted Li Wei, chief economist at Shanghai-based Horizon Advisory.
Core inflation excluding food and energy prices remained stable at 0.6% year-on-year, indicating sustained consumer demand in key service sectors. Industrial output and retail sales figures for March, scheduled for release next week, will provide broader insights into China's economic trajectory.
