Data Shows Country’s Inflation Slowed Down Faster than Expected
Official data showed that the inflation in China have slowed faster than expected in March indicating the recovery of the world’s second largest economy. Although the recovery is still weak the news allowed the central People’s Bank of China to hold off tightening monetary policies for the time being.
The country’s consumer price index which is the main gauge of inflation was at 2.1 percent last month down from 3.2 percent in February when the percentage spiked due to the Lunar New Year holidays. The slowing down of the CPI along with the 1.9 percent fall is a leading indicator of much manufacturers are paying showing the recovery is still in a fragile state. The month to month CPI fell .9 percent while in the first three months inflation remained at 2.4 percent year on year.
Analysts say that food prices still remain as the leading driver of inflation which showed a 2.7 increase year on year while coming from a 6 percent increase in February. Pork price declined 5.5 percent as consumers were turned away from pork after more than 16,000 pigs were found dead in a river flowing through Shanghai. While the country set its inflation target for this year at 3.5 percent which is lower than last year’s goal of 4 percent.