China's inflation up in April, but factory prices remain dragged by deflation | 5 key points

Consumer price index inflation inched higher in China during April, but factory-gate prices remained dragged by deflationary trends, as per the official numbers declared by the the National Bureau of Statistics on Saturday, May 10.

On year-on-year basis, consumer inflation increased by 0.3% in China, signalling a nascent recovery in domestic demand after a prolonged period of post-Covid-19 pandemic slump.

The inflation rate was also higher as compared to the preceding month of March, when it stood at 0.1%.

China inflation data for April: 5 key points

• The consumer inflation in April, at 0.3%, is higher than the median forecast of 0.2%, as per the economists tracked by news agency Bloomberg.

• The data indicates that "economic momentum and social demand have continued to recover", Bruce Pang, chief economist for Greater China at Jones Lang LaSalle Inc was reported as saying.

• The factory-gate level prices, however, are still stuck in the negative trajectory, as they declined by 2.5% as against the year-ago period.

• The decline in factory prices is lower as compared to a 2.8% drop in March, but higher than a slide of 2.3% estimated by the economists polled by Bloomberg.

• The continued slump in factory prices shows China's economy has still a long way to recovery, despite the recent green shoots in trade data, some of the economists said.

The country, earlier this week, said its exports in April quarter grew by 1.5% year-on-year as against a 7.5% drop recorded in March.

In a sign of improving domestic demand, the official data showed China’s imports rebounded with an 8.4% growth in April, as compared to a fall of 1.9% in the preceding month.