Core Viewpoint - The article discusses the recent trends in CPI and PPI, highlighting the need for policy intervention to support price recovery, with a focus on core inflation rather than overall inflation [1][5]. Group 1: CPI Analysis - CPI year-on-year decline narrowed from -0.7% in February to -0.1% in March, exceeding expectations of -0.2%, with food prices contributing negatively [1][6]. - Food prices fell significantly, with fresh vegetables and pork prices decreasing by 5.1% and 4.4% respectively, driven by improved supply and seasonal factors [2][3]. - Core inflation showed resilience, increasing by 0.5% year-on-year, with industrial consumer goods prices rising by 0.5% month-on-month [2][3]. Group 2: PPI Analysis - PPI year-on-year decline widened from -2.2% to -2.5%, and month-on-month decline increased from -0.1% to -0.4%, influenced by international factors and domestic production recovery [3][4]. - High-tech industries experienced positive price changes, with wearable device manufacturing prices rising by 4.6% [3][4]. - Prices in the black metal and non-metal mineral industries decreased due to faster production recovery compared to demand [3][4]. Group 3: Policy Implications - Recent tariff policies from the U.S. may negatively impact global demand and consequently affect China's demand [5]. - The government has emphasized the importance of price governance, indicating potential reforms in public utility pricing and market behavior regulation [5]. - The focus for this year should be on core inflation recovery, necessitating proactive policy measures to stimulate demand and support price stabilization [5].

Inflation Data - March CPI year-on-year growth rate was -0.1%, slightly better than the previous value of -0.7% and in line with market expectations[2] - March PPI year-on-year growth rate recorded at -2.5%, slightly lower than the previous value of -2.2%[2] Price Movements - Food prices decreased by 1.4% month-on-month, contributing approximately 0.24 percentage points to the CPI decline[4] - The price of wearable smart devices increased by 4.6% year-on-year, driven by advancements in high-tech industries[2] Core CPI Insights - Core CPI (excluding food and energy) rose by 0.5% year-on-year in March, reversing from a decline of 0.1% in February[8] - Service prices increased by 0.3% year-on-year in March, contributing positively to the CPI[8] Commodity Prices - March Brent crude oil average price was $72.51 per barrel, down by $2.81 from the previous month[7] - Domestic gasoline prices decreased by 3.5% month-on-month, impacting CPI by approximately 0.12 percentage points[7] Economic Outlook - The government aims for a CPI increase of around 2% for 2025, indicating a shift towards balancing supply and demand rather than strict inflation control[8] - The report suggests that effective demand recovery has significant potential, with the economy still in the early stages of inflation bottoming out[2]

Group 1: CPI Analysis - In March 2025, the CPI decreased by 0.1% year-on-year, a narrowing decline compared to the previous month's 0.7%[2] - The core CPI increased by 0.5% year-on-year, up from the previous month's 0.1%[2] - Food prices saw a year-on-year increase of -1.4%, improving from -3.3% in the previous month[4] Group 2: PPI Analysis - The PPI decreased by 2.5% year-on-year in March, compared to a decline of 2.2% in the previous month[2] - The number of industries experiencing a PPI decline increased to 21 out of 32 in March, up from 17 in the previous month[6] - The PPI's month-on-month decline was 0.4%, worsening from the previous month's 0.1%[2] Group 3: Economic Implications - The current recovery momentum for domestic prices is weak, primarily driven by the "old-for-new" policy effects in specific sectors[3] - The trade conflict with the U.S. is expected to exacerbate deflationary pressures on industrial products, impacting corporate profits and consumer confidence[9] - Policy reserves are sufficient, and further macroeconomic adjustments are anticipated to counter external shocks[10]