China’s factory-gate and consumer prices expanded faster than anticipated in March as Russia’s invasion of Ukraine and supply chain bottlenecks added to cost pressures.
CSI 300 Index down -3.09%, CNY USD down -0.11%
The rising costs of raw materials are hampering economies globally, and in China, there are concerns about how much its central bank will ease monetary policy.
China’s producer price index (PPI) rose 8.3% year on year. Even though the figure was slower than the 8.8% figure posted in February, it tops a forecast for a 7.9% surge in a Reuters poll.
Upstream pressures drove up consumer prices, rising nearly 1.5% year on year, the fastest pace in three months, an increase from 0.9% in February.
Chinese authorities have unveiled policies to support the economy, including increased fiscal spending and tax cuts for small firms.
Compared to a year ago, food prices fell 1.5%, compared with a 3.9% fall in February, leading to a drop of 0.28 percentage points in headline CPI.