China Producer Prices Slow for 5 Months... Exceed Expectations Due to 'War and COVID Lockdowns'

[Photo by AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] China's producer price inflation rate in March slowed for the fifth consecutive month but exceeded market expectations. This is interpreted as being influenced by lockdown measures due to the spread of COVID-19 and the rise in international oil prices caused by the Ukraine war. The consumer price inflation rate turned to an upward trend for the first time in four months.

Bloomberg News reported on the 11th, citing the National Bureau of Statistics of China, that China's Producer Price Index (PPI) in March rose 8.3% year-on-year.

China's PPI inflation rate has been declining since reaching 13.5% in October last year. From November last year to February this year, the inflation rates were 12.9%, 10.3%, 9.1%, and 8.8%, respectively.

However, the March inflation rate exceeded the 8.1% forecast by economists compiled by Bloomberg.

As the Omicron variant spread, lockdown measures were imposed in major Chinese cities such as Shanghai, and the resulting supply chain disruptions appear to have influenced the rise in producer prices. The Ukraine war, ongoing for nearly 50 days, which has driven up international oil prices, is also analyzed as a cause.

The Consumer Price Index (CPI) inflation rate for March was recorded at 1.5%. The CPI inflation rate showed a downward trend for three months, recording 1.5%, 0.9%, and 0.9% after 2.3% in November last year, before turning to an upward trend for the first time in four months.

The CPI inflation rate also exceeded the 1.4% forecast by economists compiled by Bloomberg.

This content was produced with the assistance of AI translation services.