A shortage in housing supply is expected to keep the market under pressure. The price of fresh vegetables shot up 35.8% amid bad weather.
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Food inflation for March too softened at 5.21 per cent, showed the data released by the Ministry of Statistics and Programme Implementation (MoSPI). It is important for traders to understand why there is a discrepancy and how this may affect China Central Bank’s monetary policy.
The cost of flights also soared 22.9% month on month, impacted by the early Easter period.
The result was slightly below expectations for a 2.4 per cent increase but a strong enough result to prompt some economists to reverse their expectations for further interest rate cuts this year.
“Accordingly, the first rate hike looks to still be some way in the distance”.
While the government has set a consumer price inflation target of around 3% for the current year, a survey of economists by the Nikkei group suggests 1.7% as more realistic.
China’s consumer price index rose again in March, but not enough to alter experts’ view that the economy faces the threat of deflationary pressure. Prices increased across the board for medical care categories, according to the report. Retail butchers may smooth pork prices in the effort of maintaining customers in the long term.
The increases in both sugar and vegetable oil were more than enough to offset the plunge in dairy prices.
The South East is leading the way, with an 11.4% price increase and we will continue to see property price rises ripple out from London over the next year as people move from central locations in search of affordable homes.
Pork is the most widely consumed meat in China and contributes more than 60 percent of its meat consumption.
China’s consumer price inflation rose less than expected in March, flattening out after a four-month strengthening trend, but wholesale prices remained stubbornly in deflation.
“But with inflation running at a quarter of its target rate, and with economic uncertainty rife, the Bank is miles away from raising rates”.
Hexun News: Chinese leading online media of financial news.
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David Morrison, Senior Market Strategist at SpreadCo., said:’Sterling has managed a modest bounce-back against the United States dollar over the past few days. Economists said the slower fall in producer prices was driven by recovering global commodity prices and also the uptick in construction activity at home.
