The annual inflation rate in China unexpectedly slowed in March to its lowest level in a year and a half, according to the latest statistical data. On a monthly basis, consumer prices declined for the second month in a row, despite estimates suggesting they will remain flat.
Post-zero covid inflation in China eases further
China’s annual inflation rate fell to 0.7% in March, from 1.0% in February, according to official figures released by the National Bureau of Statistics. That is the lowest figure since September 2021, the Trading Economics website noted that aforementioned the data.
The unexpected fall reflects a further reduction in the costs of food and non-food items that comes amid an uneven economic recovery after the removal of the government’s zero covid policy, the statistical portal highlighted on Tuesday.
Food inflation eased to 2.4% from 2.6% in February, a 10-month low largely due to a decline in the cost of fresh vegetables that turned out to be more pronounced than the rise in prices. of pork, analysis shows.
At the same time, non-food prices also continued to decline, from 0.6% to 0.3%, a trend linked to further falls in transport costs (-1.9% vs. 0.1%). and housing (-0.3% compared to -0.1%), detailed the report.
Meanwhile, at the other end of the spectrum, education costs rose more than the previous month, at 1.4% in March from 1.2% in February, and inflation was unchanged for health-related expenses. , at 1.0%.
Core consumer prices, excluding volatile food and energy prices, rose 0.7% year-over-year, after rising 0.6% in the previous month, the state statistics office also said. They fell 0.3% per month despite forecasts that they would remain flat.
Hong Kong stocks rose after the government report on slowing price rises. Experts have been explaining China’s lower inflation compared to Western economies through Beijing’s tighter monetary policies during the pandemic, access to cheaper energy from allies like Russia and Iran, and the fact that the country it produces many of the basic products it needs.
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