China’s consumer price inflation eased to a three-month low in April on weak food price growth, while producer price inflation increased for the first time in seven months on commodity prices, data from the National Bureau of Statistics showed Thursday.
Inflation eased to 1.8 percent in April from 2.1 percent in March. This was the lowest since January, when the rate was 1.5 percent and below the expected level of 1.9 percent.
The government targets around 3 percent inflation for 2018.
Food price inflation decreased to 0.7 percent from 2.1 percent, while non-food price inflation held steady at 2.1 percent in April.
On a monthly basis, consumer prices dropped 0.2 percent following March’s 1.1 percent decrease. Prices have declined for the second straight month.
Another report from NBS showed that producer price inflation accelerated to 3.4 percent from 3.1 percent in March. The rate came in line with expectations. Prices have increased for the first time since last September.
Month-on-month, producer prices fell 0.2 percent, the same pace of decrease as seen in March.
Julian Evans-Pritchard, an economist at Capital Economics, expects a broader easing of price pressures to keep consumer price inflation anchored near current rates in the coming quarters.
Meanwhile, if expectation for a further decline in the price of key industrial commodities proves correct, then producer price inflation will likely be back in negative territory by the end of the year, the economist noted.