Group 1: CPI Inflation Analysis - February CPI inflation recorded at -0.7%, significantly lower than the previous value of 0.5% and market expectation of -0.4% [1] - The decline in CPI is primarily attributed to the high base effect from the Spring Festival and weak post-holiday demand, particularly in food prices, which fell by 0.5% month-on-month and saw a year-on-year decrease of 3.7 percentage points to -3.3% [2][4] - Core CPI inflation ended a four-month rise, dropping to -0.1%, the lowest level for the same period since 2015, with service prices declining significantly due to reduced demand post-holiday [4][5] Group 2: PPI Inflation Analysis - February PPI inflation stood at -2.2%, showing a slight recovery of 0.1 percentage points, while month-on-month it decreased by 0.1% [6] - The slow resumption of work post-holiday has led to weak prices for finished goods, with production materials and living materials prices remaining stable [6][7] - The outlook for PPI inflation suggests potential recovery as construction project funding pressures ease, which may accelerate project progress [8] Group 3: Forward-Looking Insights - The February inflation data fell short of expectations due to high base effects and slow resumption of work, with the government setting a CPI inflation target of around 2% for 2025, indicating ongoing pressure for price recovery [6][8] - The expected CPI inflation midpoint for the first quarter is around 0.2%, with an annual midpoint projected at 0.5%, while PPI inflation is anticipated to rise to around -2.0% in the first quarter and converge towards -1.6% for the year [8]