China's inflation rebounds in March, easing deflation fears
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E-mail Xinhua, April 12, 2019
With the consumer prices rebounding solidly in March and producer prices notching its first acceleration in nine months, market fear over deflation risks of the Chinese economy has been largely abated.
As there is no worry about high inflation risk, analysts said China's monetary policy will remain unchanged, and there is still much room for the country's central bank to manoeuver its monetary tools.
Consumer prices
The latest data from the National Bureau of Statistics (NBS) showed China's consumer price index (CPI), a main gauge of inflation, rose 2.3 percent year on year in March, compared with 1.5-percent growth in February.
Food prices climbed 4.1 percent year on year, up from 0.7 percent in February.
Due to low vegetable yields in spring and cold rainy weather, prices of fresh vegetables posted a fast growth of 16.2 percent year on year in March, contributing 0.42 percentage points, the highest portion, to the year-on-year CPI growth, the NBS data showed.
Asian financial service group Nomura paid particular attention to the pork prices in its analysis.
"Pork prices are set to become a major source of CPI inflation this year as the stock of hog stocks and breeding sows have fallen to historically low levels," said the Nomura.
The growth of the pork price rebounded after declining for 25 consecutive months, rising 5.1 percent year on year in March, the NBS data showed.
On a month-on-month basis, pork prices moderately went up 1.2 percent on average nationwide, as outbreaks of African swine fever were gradually contained, according to the NBS.
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