Daily Management Review

Inflation in China shows the lowest growth in 18 months


The consumer inflation index (CPI) for China increased by 0.7 percent in March from a year earlier, which was the smallest gain since September 2021 and less than the 1 percent increase predicted by Reuters' poll of analysts.

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According to analysts, China's dramatic decrease in inflation is the result of a decline in consumer demand in the country where the economy is still recouping from the consequences of the harsh lockdowns of 2022. The March figures show that the country's inflation rate is slowing.

Zhou Hao of Guotai Junan International noted that "this shows that the Chinese government have more space to ease monetary policy in order to promote demand."

Zhang Zhiwei, Chief Economist of Pinpoint Asset Management Ltd., added that "there is an economic recovery, but it is not significant enough to drive prices up." This can indicate that the economy isn't operating at its full potential.

source: scmp.com