It fell to 0.7% during that month after marking a recent peak of 2.8% in September, as noted by CNBC. Meanwhile, the producer price index in China fell 3.6%.
China reported a 0.1% variation in inflation for April, the lowest in two years since the pandemic hit. This may come as a surprise as economists had expected consumer prices to rise 0.4% from a year earlier and remain unchanged from March.
It fell to 0.7% during that month after marking a recent peak of 2.8% in September, as noted by CNBC. Meanwhile, the producer price index in China fell 3.6%.
That contrasts with the latest US inflation data, which showed consumer prices rose 4.9% in April, slowing as the Fed tries to rein in inflation by raising rates 10 times in a row.
Bank of America China economist Helen Qiao said: “Inflation has eased substantially since China’s reopening, leading market watchers to question whether the world’s second-largest economy is headed for deflation.” Is.”
“It almost seems that when major central banks find it difficult to tame the beast of inflation, the People’s Bank of China would be high on the inflation control scorecard,” he wrote.
Qiao said the country has managed to keep the CPI inflation rate at an average of 1.8 percent, which is close to the lowest 3-year average reading since 2003.
On the other hand, economists at Standard Chartered said: “We expect China’s core inflation to rise above 2% year-on-year by the end of 2023, thanks to the continuation of the economic recovery, despite the slowdown we had initially forecast.” Economy lower than expected. Economy amid global recession.
