China March inflation grows 1.4% yoy

Residents purchase vegetables at a market in Zhengzhou, capital of central China’s Henan Province, April 10, 2015 [Xinhua]

China’s consumer price index (CPI), the main gauge of inflation, grew 1.4 per cent year on year in March, the National Bureau of Statistics (NBS) said Friday.

The reading remained the same as in February, up from a 0.8-per cent gain in January, the lowest level in more than five years.

On a monthly basis, consumer prices in March edged down 0.5 per cent from February.

NBS statistician Yu Qiumei attributed the monthly drop to declining prices after the Chinese Lunar New Year holiday.

Food demand retreated after the holiday, vegetables are in rich supply due to seasonal factors and service prices dropped as many workers returned to their jobs after the holiday, Yu said.

“The March CPI came in at 1.4 percent year on year, slightly higher than the market consensus and our expectation of 1.3 per cent,” said Bob Liu, an analyst with the China International Capital Corp., adding that deflationary risks remain high.

China’s economy grew 7.4 per cent in 2014, the weakest annual expansion in 24 years. A string of economic indicators for the new year, including manufacturing and trade data, all suggested continued weakness.

The annual government work report, delivered by Premier Li Keqiang at the national legislature’s annual session, set this year’s economic growth target at around 7 percent and its inflation control target at around 3 per cent.

 

Source: Agencies