BEIJING, China – Inflation in China grew at its slowest pace since last October, official data showed on Friday, April 10, falling from 8-year highs due to a drop in food prices as the country gradually lifts virus lockdowns.
Consumer prices jumped 4.3% in March year-on-year, the National Bureau of Statistics (NBS) said, after increasing 5.2% in February.
This is lower than the forecast of a 4.9% increase by analysts polled by Bloomberg.
Weak oil prices and suppressed demand due to drastic coronavirus measures meant that consumer inflation last month grew at the slowest pace since October, according to NBS data.
Pork prices – the biggest contributor to consumer inflation – started to soften as transport restrictions were lifted, slaughterhouses resumed work, and local governments increased sales of pork reserves, the NBS said.
The price of China’s staple meat – which was already high after African swine fever ravaged the country’s pig herds – increased 116.4% in March compared with a year earlier, down from the 132.5% jump in February.
Dramatic lockdown measures to stop the spread of the coronavirus in the first few months of the year disrupted businesses across the country.
China’s producer price index (PPI), reflecting the prices that factories charge wholesalers for their products, dropped 1.5% year-on-year last month, signaling that manufacturers continued to suffer from the pandemic fallout.
That was worse than the 0.4% fall in February and the 1.1% contraction expected in a Bloomberg survey of analysts.
Chinese factory activity saw surprise growth in March as factories sputtered back to life, but the economy faces ongoing challenges with external demand hammered by the global spread of the coronavirus.
“Since the beginning of this year, due to the coronavirus epidemic, the development of foreign trade has faced severe challenges that have not been seen in many years,” China’s assistant commerce minister Ren Hongbin said in a press briefing on Friday.