Data released by China’s National Bureau of Statistics on Thursday, April 10, showed that the annual Consumer Price Index (CPI), a key measure of inflation, rose to 1.0% year-on-year in March, up from 1.3% in February. This marked the fastest growth rate since January 2023 and fell short of market expectations of 1.2%. The slowdown in inflation occurred amid typical seasonal fluctuations following the Lunar New Year. Meanwhile, the Producer Price Index (PPI) registered a positive reading for the first time since 2022.

The core PPI, which excludes volatile food and energy prices, rose to 1.1%, compared to a 1.8% increase in February.

Separately, China’s Producer Price Index (PPI) entered positive territory for the first time since 2022, ending a 41-month deflationary streak. It grew by 0.5% year-on-year in March, compared to a 0.9% decline in February, exceeding expectations of 0.4% growth.