China's Deflation Concerns Persist... March CPI Rises 0.1% (Update)

China is raising concerns about deflation as it shows a low inflation rate.

On the 11th, the National Bureau of Statistics of China announced that the Consumer Price Index (CPI) for March rose by 0.1% compared to the same period last year. This is below both the previous month's figure (0.7%) and market expectations (0.4%).

Food prices fell by 2.7%, driving the overall price decline, while non-food prices increased by 0.7%. Consumer goods prices dropped by 0.4%, and service prices rose by 0.8%.

By item, prices of food, tobacco, and alcohol fell by 1.4%, with egg prices among food items retreating by 8.9%. Fresh fruit dropped by 8.5%, pork by 2.4%, and fresh vegetables by 1.3%. Prices of seafood and grains rose by 1.2% and 0.5%, respectively.

Meanwhile, the Producer Price Index (PPI) for the same period fell by 2.8%, in line with expectations. This figure shows little change from the February PPI decline of -2.7%.