From Yahoo: 2024-04-10 22:03:00

China’s consumer prices rose only 0.1% in March from a year ago, falling below expectations. Industrial prices continue to drop for the 18th consecutive month. Weak domestic demand, coupled with a potential US interest-rate gap, are putting pressure on China’s economy and currency. Household spending remains crucial for reaching growth targets.

The slowdown in consumer inflation is attributed to weak March consumption, while tourism price increases slowed. Falling prices of household items and transportation are impacting the economy. The government is offering subsidies to boost demand for newer, greener appliances. A housing market slump and reduced demand for building materials are contributing to declining producer prices.

The risk of deflation remains, with expectations of more aggressive price competition in various industries. Core inflation, excluding food and energy prices, dropped to 0.6%. Analysts predict ongoing deflation may prompt the People’s Bank of China to cut rates in the coming months. The economy’s recovery may depend largely on overseas demand and government support.



Read more at Yahoo: China Inflation Stalls as US Speeds, Adding to Pressure on Yuan