Data released over the weekend showed that China’s consumer price index rose 0.3% y/y last month, accelerating from a 0.1% rise in March, which was also the consensus forecast. Meanwhile, producer prices declined for the 19th consecutive month.
It was the third straight month of consumer inflation, amid ongoing recovery in domestic demand despite a fragile economic revival.
Monthly, the CPI increased by 0.1%, a reversal from a 1.0% fall in March, which was the steepest decline in three years.
China’s producer prices declined by 2.5% y/y in April 2024, compared with market forecasts of a 2.3% fall and following March’s figure of a 2.8% decrease, marking the 19th straight month of contraction in factory-gate prices, underlining persistent economic uncertainty despite multiple support measures from the government.
On a monthly basis, producer prices fell 0.2%, the sixth straight month of retreat, after a 0.1% decline in March.
The core consumer prices, deducting food and energy prices, increased by 0.7% y/y in April, compared with a 0.6% rise in March.
Food prices in China dropped by 2.7% from the prior year in April 2024, the same pace as in the previous month. It was the 10th straight month of declines, as prices fell further.
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