March Consumer Inflation in China Steady, Wholesale Prices Drop
In March, consumer price inflation in China grew slightly but not according to expectations, that leveled out the strengthening trend of four-months. The wholesale prices continued its Drop.
In the month, consumer prices rose 2.3 percent which was a little lower than average forecast of 2.5 percent but remained at par with the increase on February which was also 2.3 percent. In January the figure showed a quicker rise marking the most in last one year or a little more. The gain mainly came from gains in food prices after the unpredictable harsh winter.
The economists are closely watching the inflation in China in the year after prolonged policy of easing adopted by the central bank starting from late 2014. It has increased credit but till now has not resulted in significant price elevations.
In March, the producer prices dropped 4.3 percent continuing their slide for four years. However, the rate dropped at a slower pace than forecasted at 4.6 percent.
Drop in commodity prices and overcapacity in major industrial sectors lends a hand in sluggish rise in producer prices which has continued for long. However, the declines have slowed down in the recent months.