China: Inflation stabilizes at low levels in March
April 10, 2015
In March, consumer prices fell 0.5% over the previous month, which largely contrasted the 1.2% increase tallied in February. The monthly reading mainly reflected a sharp drop in prices for food as well as for recreation, education and cultural items.
Annual inflation was stable in March at the previous month’s 1.4%, which slightly overshot the 1.3% that market analysts had expected. As a result of the annual reading, the trend resumed the downward trend that was briefly interrupted in February. Annual average inflation inched down from February’s 1.8% to 1.7% in March, which marked the lowest print since July 2010.
Meanwhile, the producer price index fell 4.6% in March over the same month last year (February: -4.8 year-on-year). Moreover, the print was up from the 4.8% decline that market analysts had expected. The annual average variation of the producer price index inched down from minus 2.3% in February to minus 2.5% in March, which represented a five-year low.