Consumer prices in China decreased by 0.1 % in March, indicating high shrinkage pressure

Consumer prices in China decreased by 0.1 % on an annual basis in March, and remained in the shrinkage area after contracting with 0.7 % in February.

Reuters economists expected flat reading compared to the same period last year.

Producers have witnessed a greater decrease than expected, as it decreased by 2.5 % Year on a year in March. This is the largest contraction since November 2024, and the twenty -ninth month represents that the prices of producers were in an area of ​​deviation.

Reuters poll was expected to shrink 2.3 %.

Data comes as US President Donald Trump The definitions on Chinese imports raised to 125 % Overnight, an increase of 104 %. Hours ago, China had averaged before The United States struck with a tariff 84 % on Wednesday.

After issuing the data, the wild yuan weakened the trading at 7.35 against the dollar, while CSI 300 increased by 0.82 %.

Earlier in March, Chinese Prime Minister Lee Qiang was He submitted an annual report on government work This has defined augmented consumption as the supreme task for the coming year, as the country has set an ambitious goal of growth “about 5 %”.

This is the first time in a decade that Beijing gave consumption a high priority, said Laura Wang, head of the Chinese stock strategy in Morgan Stanley. She added that the government action report was martyred with “consumption” 27 times – which is mentioned in a decade.

While Beijing did not follow the United States or other countries in distributing cash to consumers, Chinese policy makers have increasingly recognized the need to face contraction at home.

In an attempt to stimulate local consumption, Chinese policy makers in March Double support for the Consumer Trading Program to 300 billion yuan ($ 41.47 billion) this year. The subsidies will reach about 15 % to 20 % of the purchase price for the chosen products, including medium -range smartphones and home appliances.

This expanded from Yuan last year, which was announced in the summer, for a narrower range of products.

China must focus more on domestic demand given the possibility of “new shocks” to demand abroad, said Shin Danish, head of the government work report formulation and director of the State Council Research Office, told reporters in Mandarin, translated by CNBC.

Chinese officials said that facing the goal of growth requires a “very hard work”, according to CNBC’s translation of their statement in Chinese. The situation has been complex due to the increase in commercial tensions between Beijing and Washington.

This is urgent news. Please check again for updates.

Evelyn Cheng of CNBC contributed to this report.