China's March CPI Increase Rate 4.3%·PPI -1.5% (Supplement)

[Asia Economy Beijing=Special Correspondent Park Sun-mi] China's Consumer Price Index (CPI) inflation rate for March recorded 4.3%.

On the 10th, the National Bureau of Statistics of China announced that the March CPI rose 4.3% year-on-year, while the Producer Price Index (PPI) fell 1.5%.

The March CPI inflation rate of 4.3% is 0.9 percentage points lower than the 5.2% announced in February. It is also lower than experts' forecast of 4.9% for March. As a result, the CPI inflation rate for the first quarter of this year was recorded at 4.9%.

By region, the CPI rose 4.0% in urban areas and 5.3% in rural areas. By category, food prices increased by 18.3%, while non-food prices rose by only 0.7%. Among food prices, meat prices saw the largest increase at 78%. Pork (116.4%), beef (21.7%), and lamb (12.1%) recorded high inflation rates in that order.

Although the production and supply of food items improved compared to February due to the spread of COVID-19, the still high food price inflation indicates that the shock caused by COVID-19 has not been completely overcome.

Meanwhile, the March PPI fell 1.5% year-on-year. The decline widened compared to the 0.4% drop in February. Since re-entering negative territory in February, it has recorded negative growth for two consecutive months.

The PPI, which reflects prices of raw materials, intermediate goods, and product shipment prices, is considered one of the leading economic indicators showing vitality in sectors such as manufacturing. A negative PPI inflation rate is generally interpreted as a sign of deflation, suggesting that the economic slowdown in China caused by COVID-19 may continue to accelerate.