City skyline in China

China Inflation March 2022

China: Consumer price inflation increases in March; producer inflation dips

Consumer prices were flat in March over the previous month, coming in below the 0.60% rise seen in February. The reading was primarily driven by dropping prices for food—particularly pork—offsetting higher transport prices.

Consumer inflation came in at 1.5% in March, which was up from February’s 0.9%. March’s figure represented the highest inflation rate since December 2021. Meanwhile, the trend pointed up mildly, with annual average inflation coming in at 1.2% in March (February: 1.1%). Finally, producer price inflation fell to 8.3% in March, from February’s 8.8%, driven by a notably tougher base effect, although a higher month-on-month increase in producer prices was testament to shocks in international commodity markets.

Looking forward, notwithstanding higher international food and energy prices, consumer price inflation will likely stay subdued on limp domestic demand. Meanwhile, producer price inflation should gradually trend down on a base effect, given increasingly high producer price inflation readings as last year progressed, despite Covid-19-induced supply difficulties and an unfavorable international price environment.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest