(NBS) China’s consumer prices rose by an annual 1.5% in March, the fastest in three months, beating estimates of 1.2%.
The consumer prices increase accelerated from a gain of 0.9% in February, highlighting the impacts of the Ukrainian crisis, supply chain bottlenecks, and production challenges brought about by local Covid flare-ups.
The producer prices rose by an annual 8.3%, more than expected gain of 7.9%. The increase was slower than a surge of 8.8% in February.
Analysts at Nomura say that potential delays in crop planting caused by the pandemic and the Ukraine conflict could escalate food prices in the second half of the year. The analysts say the rising inflation limits the ability of China’s central bank to cut rates, despite the worsening economy.
Sheana Yue, China Economist at Capital Economics, says although the price of some goods will stay elevated in the near-term, wider inflation will be contained, allowing the central bank to ease policy.
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