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China CPI misses forecasts in March, factory prices declining

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Staff writer ▼ | April 12, 2016
Inflation pressures in China were slightly more muted than expected in March, but analysts drew comfort from a lower pace of declines in factory gate prices.
The biggest Asian economy   Consumer prices rose 2.3% year-on-year
For March, consumer prices in Asia's largest economy were flat in month-on-month terms, but rose at a 2.3% year-on-year clip.

Non-food inflation was steady, rising by 1.0% year-on-year, with small rises evident in most components amid a sharp drop in transportation prices, following the Chinese New Year holiday.

In parallel, food price inflation moved up from a pace of 7.3% year-on-year to 7.8%, as inflation in pork prices picked up from a 25.4% year-on-year clip to 28.4%.

Factory gate prices on the other hand came in ahead of forecasts, declining at a 4.3% year-on-year pace, which was better than February's drop of 4.9% (consensus: -4.6%). Producer prices increased 0.5% month-on-month - their first gain since 2013.

Deflation in global commodity prices continued to weigh on the process of industrial inputs, which accounted for 75% of the index.