China Ppi And Cpi Inflation Turns Lower In March

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China Ppi And Cpi Inflation Turns Lower In March

China: PPI & CPI Inflation Turns Lower In March

For March, consumer inflation in China remained weak than market expectations. Similarly, the PPI (Producer price inflation) also contracted during the same period of time.

Both of these indexes tell us that the economic recovery after COVID is now underway in China. However, the pace of this economic recovery is showing signs of losing steam which is a troubling sign for China!

China: CPI Increased By 0.7% During March

The Chinese CPI increased by 0.7% during March, which was slower than the 1% forecast. In addition, last month's CPI value was also 1% which tells us this index has gone down during March.

And if we look on a monthly basis, the CPI inflation in China has gone down by 0.3% during March when compared with February.

This CPI reading is a sign that consumer spending in China is still weak and has failed to stage a recovery post-COVID. This comes at a time when the Chinese government is taking measures to increase consumer spending.

One of the major driving forces of the Chinese economy is its consumer spending. But it appears that years of COVID lockdowns have made a major blow to consumer spending in the country.

Similarly, a weak reading of the PPI also indicates that the manufacturing activity is losing momentum. During March, the PPI inflation was down by 2.5%, which was in line with expectations.

The PPi reading suggests that the manufacturing activity in China is struggling to expand. In fact, the reading is now pointing towards a possible contraction which is not good news for the Chinese economy.

In addition, overseas demand is also weak, which is effecting Chinese factories. If we look across the globe, the economic conditions are not ideal at all which is also affecting an export-oriented country like China.

Although the Chinese exports shrunk during March, there was an increase in the imports after months of decline.

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