Chinese prices for consumer

Consumer prices in China slid 0.1% a year in March, remaining in the deflationary territory after a 0.7% contract in February.

Economists interviewed by Reuters expected flat reading compared to the same period last year.

Producers have noticed a decline larger than expected by decreasing by 2.5% Year a year in March. This is the largest reduction since November 2024, and also marks the 29th month, when the prices for manufacturers were in the deflationary territory.

The Reuters survey expected a 2.3%reduction.

Data comes when US President Donald Trump Made tariffs on Chinese imports up to 125% Over the night, compared to 104%. Hours earlier China avenged On Wednesday, 84% hit the US.

After the release of the data on the shore, the yuan weakened to trade at 7.35 to the dollar, while the CSI 300 increased by 0.82%.

Earlier in March was the Chinese Prime Minister Lee Ten Taked out an annual government’s work report This called the increase in consumption of the main task for the year when the country set an ambitious goal of “about 5%”.

This is for the first time in a decade when Beijing gave consumption of such a high priority, said Laura van, China’s chief strategist in Stanley. She added that the government’s report referred to the “consumption” 27 times – most of the mention in ten years.

While Beijing did not follow the US or other countries, giving away cash consumers, Chinese politicians have increasingly recognized the need to withstand the deflationary pressure at home.

In an effort to push internal consumption, Chinese politicians in March This year’s subsidies for consumer program up to $ 300 billion ($ 41.47 billion). Subsidies will go up to about 15% to 20% of the purchase price for selected products, including middle -level smartphones and home appliances.

This expansion from last year’s program is 150 billion yuan, announced in the summer for a narrower product range.

China should focus more on domestic demand, given the possibility of “new upheaval” abroad, Shan Danyan, Head of the State Labor Report and Director of the State Council, reported to reporters in March in Mandarin translated by CNBC.

Chinese officials have stated that it would take a “very hard work,” translating CNBC in Chinese. The situation was additionally complicated by the intensified trading between Beijing and Washington.

This is conducting the news. Please check the updates.

– Evelyn Chen to CNBC contributed to this report.