Inflation in China reached 1% year-on-year in March, marking a slight slowdown after the rise recorded in February. At the same time, producer prices returned to positive territory for the first time since 2022, according to data released by the National Bureau of Statistics.
The consumer price index thus recorded a sixth consecutive month of growth, but remains below the official target of 2% for 2026. This slowdown is explained in particular by a decline in service prices after the Chinese New Year period, despite rising fuel costs against a backdrop of international tensions.
An economy still under pressure
Producer prices rose by 0,5% year-on-year, ending a long period of decline that had been weighing on the margins of industrial companies. This development is partly linked to the rise in raw material prices on global markets.
Despite these positive signs, the Chinese economy continues to face fragile domestic demand, industrial overcapacity, and a persistent crisis in the real estate sector. The authorities are still prioritizing a rebalancing towards consumption, without, for the time being, altering their economic direction.
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