10.04.202501:30:00UTC+00China's CPI Slides Further into Deflationary Territory: March Sees a -0.4% Shift

As of March 2025, China's Consumer Price Index (CPI) experienced a further decline, marking a month-over-month decrease of -0.4%, according to the latest data updated on April 10, 2025. This downtrend from February's -0.2% suggests strengthening deflationary pressures across the economy.

The comparison of the current period indicates that the actual change in March stands as a continuation of February's decline. The figures convey a persistent contraction in consumer prices, with the March decrease doubling that of the previous month. This trajectory highlights potential challenges in China's economic recovery and raises concerns about consumer demand and pricing power.

The deflationary trend in the CPI could prompt policymakers to engage more aggressively with monetary and fiscal measures to stimulate growth and mitigate the risk of a deeper economic slowdown. As China's economic stewards monitor these developments, the global financial community will be watching closely for policy responses aimed at reviving inflation to a more sustainable trajectory.