China’s consumer inflation eased in March after hitting an eight-year high in February, while factory gate prices fell as economic pressure from the coronavirus pandemic persisted, reported the Financial Times.
The national bureau of statistics said that the consumer price index, a measure of the cost of household goods and services, rose 4.3% in March compared with the same month a year earlier. In February prices had risen 5.2% year-on-year, driven by rocketing prices for consumer goods.
The smaller-than-expected increase in prices — a Reuters poll of analysts suggested a 4.8% rise — suggested that supply was increasing but consumer demand continued to be a concern, said Hao Zhou, an economist at Commerzbank.
“Stimulus is on the way,” said Hao, adding that the scale and nature of measures to spur demand were still unclear.