China’s CPI fell -0.4% MoM and was down -0.1% YoY in March, weaker than the -0.2% MoM and +0.1% YoY rates that were expected.

• However, on an annual basis, CPI increased from -0.7% YoY in February due to a very weak -1.0% MoM reading in March 2024.
• Food prices fell -1.4% MoM and -1.4% YoY but this was up from -3.3% YoY in February.
• Goods CPI was down -0.4% MoM and -0.4% YoY, and services CPI was down -0.4% MoM but up 0.3% YoY.
• Core CPI (ex food and energy) was flat on a monthly basis and up 0.5% YoY, up from a -0.1% YoY decline in February.
• Prices for daily necessities, specifically household goods, were up 1.3% MoM, the segment with the largest MoM increase.
• Outside of the decline in food prices, gas prices (-3.5% MoM) and tourism prices (-5.9% MoM) saw the largest monthly declines.