During that month it dropped to 0.7% after marking a recent peak of 2.8% in September as noted by CNBC. Meanwhile, the Producer Price Index in China fell by 3.6%.
China reported a variation in inflation of 0.1% for April, being the lowest in two years since the pandemic. This may come as a surprise as economists expected consumer prices to rise 0.4% from a year earlier and remain unchanged from March.
During that month it dropped to 0.7% after marking a recent peak of 2.8% in September as noted by CNBC. While, the Producer Price Index in China fell by 3.6%.
That’s a stark contrast to the latest US inflation data which showed that consumer prices increased by 4.9% in April, declining as a result of the Fed’s efforts to control inflation by raising rates 10 times in a row.
“Inflation has moderated to a large extent in China after it reopened, leading market watchers to question whether the world’s second-largest economy is headed for deflationsaid Bank of America China economist Helen Qiao.
“It almost seems that when the major central banks find it difficult to tame the inflationary beast, the People’s Bank of China would have been high on the scorecard of inflation control,” he wrote.
Qiao added that the country has managed to maintain the inflation rate of the consumer price index at an average of 1.8%, which is close to the lowest 3-year average reading since 2003.
On the other hand, economists from Standard Chartered expressed: “we hope that China’s core inflation to rise above 2% yoy by the end of 2023 thanks to the continuation of the economic recovery, less than we initially expected due to the sluggishness of the economy amid the global slowdown”.
Source: Ambito
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