China’s consumer prices fall for 2nd straight month in March

By Tuba Ongun

Consumer prices in China decreased for a second consecutive month in March, missing market forecasts of a flat reading, as the intensifying trade war with the US risks adding further pressure to lower prices.

The Consumer Price Index (CPI) in China fell 0.1% year-on-year in March, continuing its deflationary trend following a 0.7% decline in February, according to data released by the National Statistics Bureau Thursday.

Core inflation, which excludes food and fuel prices, increased to 0.5% from a year ago, reversing February's 0.1% decrease.

Factory deflation continued for the 30th month in a row, with the producer price index falling at an accelerated rate of 2.5% in March, up from February's 2.2% decline.

On a monthly basis, the CPI dropped by 0.4%, a sharper decline than 0.2% in February, marking the second consecutive month of contraction.

On Wednesday, US President Donald Trump announced a hike in tariffs on Chinese goods to 125%, following Beijing's decision to impose an 84% tariff on all imports from the US as a retaliatory measure.