Inflation slows in China

Inflation in China slowed faster than market expectations as consumers remained cautious despite the end of pandemic controls late last year. According to data from China's National Bureau of Statistics, consumer prices rose 1.0 percent in February compared with the same month last year. Economists expected the increase to slow to 1.7 percent from 2.1 percent the previous month. Seasonally adjusted consumer prices fell 0.5 percent monthly. Analysts had predicted a 0.2 percent increase. Food prices, which rose 6.2 percent the previous month due to pork prices, increased by 2.6 percent last month. Pork prices increased by 11.8 percent annually in the first month of the year, while the rate of increase slowed to 3.9 percent last month. Non-food prices increased by 0.6 percent. Consumer prices increased by 1.5 percent in the first two months of the year. Producer price deflation deepens Producer prices continued to deepen the decline that began in October 2022. Producer prices fell by 1.4 percent in February compared to the same month last year. Market expectations were that the decrease, which was 0.8 percent the previous month, would come to 1.2 percent. There was no change in producer prices on a monthly basis. The decrease in producer prices in the first two months of the year was 1.1 percent.