- Analytics
- News and Tools
- Market News
- China: Inflation lost further traction in March – UOB
China: Inflation lost further traction in March – UOB
Ho Woei Chen, Economist at UOB Group, assesses the release of the latest inflation figures in China.
Key Takeaways
“Headline inflation slowed to 0.7% y/y in Mar, the lowest since Sep 2021 when it was at the same level. However, core inflation (excluding food & energy) edged marginally higher to 0.7% y/y from 0.6% y/y in Feb.”
“Overall, headline and core inflation averaged 1.3% y/y and 0.8% y/y respectively in 1Q23. Given the weak price pressure to-date, we will revise our full-year headline inflation forecast lower to 2.0% from 2.8%. This will be similar to the inflation rate in 2022.”
“China’s Producer Price Index (PPI) declined y/y for the sixth consecutive month due to the high base of comparison but was flat on a sequential basis for the second straight month which may suggest the stabilization of the domestic economy.”
“PPI decline averaged -1.6% y/y in 1Q23. We retain our forecast that PPI will remain in deflation through 1H23 and average -1.0% in 2023 after rising 4.1% in 2022 and 8.1% in 2021.”
“The inflation data continues to indicate weak demand pressure in China that is consistent with PBoC’s accommodative monetary policy stance and calls for continued fiscal support.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
