China March producer inflation cools, consumer inflation below forecast

[BEIJING] China's producer price inflation cooled for the first time in seven months in March as iron ore and coal prices tumbled, pressured by fears that domestic demand is not strong enough to absorb surging supplies of steel.

The producer price index (PPI) rose 7.6 per cent from a year earlier, in line with economists' expectations for a moderation from the previous month's gain of 7.8 per cent.

China's consumer price index (CPI) rose 0.9 per cent from a year earlier, edging up from February's 0.8 per cent but slightly below analysts' forecasts, the National Bureau of Statistics said on Wednesday.

Analysts polled by Reuters had predicted March consumer price inflation would edge up to one per cent but remain well within the central bank's comfort zone, giving it room to continue with a gradual pace of monetary policy tightening without risking crimping economic growth.

REUTERS