China inflation falls to lowest rate in more than two years

Consumer inflation in China dropped to its lowest rate in more than two years in April, while producer price deflation deepened further, according to data released on Thursday.

The consumer price index (CPI) rose by 0.1% in April year on year and down from 0.7% in March, the National Bureau of Statistics (NBS) said - the lowest rate since February 2021.

“In April, the market supply was generally adequate, and consumer demand gradually recovered, with the CPI falling by 0.1 per cent from a month earlier and rising by 0.1%, year on year,” said senior NBS statistician Dong Lijuan.

“Core CPI, excluding food and energy prices, rose by 0.1% from a month earlier to 0.7%, year on year, up at the same rate as in the previous month.”

Meanwhile, the producer price index (PPI), which reflects the prices that factories charge wholesalers for products, fell by 3.6% in April, year on year, down from a fall of 2.5% in March.

Reporting by Frank Prenesti for Sharecast.com