Inflation & Prices
China’s Weak Inflation Fuels Calls for More Policy Stimulus
- CPI rises 0.7%, missing expectations, while PPI drops 2.5%
- Experts say muted data leaves more room for policy support
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China’s consumer and producer inflation remained muted in March, suggesting more monetary or fiscal stimulus may be needed to strengthen the economy’s recovery.
The consumer price index rose 0.7% last month from a year ago, the National Bureau of Statistics said Tuesday, weaker than the 1% forecast by economists in a Bloomberg survey. Producer price deflation worsened to 2.5%, the lowest since June 2020. Core inflation, which excludes volatile food and energy prices, climbed slightly to 0.7% from 0.6%.