The customer chooses vegetables at the Supermarket in Mengzi City, the province of Yunnan in south -western China, February 9, 2025.
Xinhua Information Agency | Xinhua Information Agency | Getty images
Consumer prices in China slipped in March by 0.1% of the year, remaining on the deflationary territory after overthrowing 0.7% in February.
Economists surveyed by Reuters expected flat reading compared to the same period last year.
Manufacturers' prices recorded a higher than expected decrease, falling by 2.5% year in March. This is the largest contraction since November 2024, as well as the 29th month in a row, in which the prices of producers were on the deflationary territory.
The Reuters survey expected 2.3% contraction.
Data appears like US President Donald Trump Chinese imports for Chinese imports up to 125% From day to day, compared to 104%. A few hours earlier, China took revenge by An impact in the USA with a 84% tariff on Wednesday.
After releasing the data on land, it weakened to exchange of 7.35 in relation to the dollar, while CSI 300 increased by 0.82%.
Earlier in March the Chinese Prime Minister Li Qiang had provided an annual report on government work This was called an increase in consumption as the most important task in the coming year, because the country set the ambitious goal of growth “about 5%”.
For the first time in a decade, Beijing gave consumption of such a high priority, said Laura Wang, the main strategist of Equity in Morgan Stanley. She added that the government's work report cited “consumption” 27 times – most references for a decade.
While Beijing did not observe the US or other countries to give consumers cash, Chinese decision -makers increasingly recognized the need to counteract deflation pressure at home.
In order to stimulate domestic consumption, Chinese decision makers in March Disabled subsidies for the consumer exchange program up to $ 300 billion ($ 41.47 billion) this year. Subsidies will be allocated to about 15% to 20% of the purchase price of selected products, including medium -class smartphones and home appliances.
This is an expansion from last year's 150 billion yuan program, announced in the summer, for a narrower range of products.
China must focus more on domestic demand, taking into account the possibility of “new shocks” on foreign demand, Shen Danyang, head of the Government Report development group and the director of the State Council Research Office, told journalists in March in Mandarin, translated by CNBC.
Chinese officials said that achieving the goal of growth would require “very tedious work”, in accordance with the translation of their statement in Chinese. The situation was additionally complicated by increased commercial tensions between Beijing and Washington.
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– Evelyn Cheng from CNBC contributed to this report.