China’s PPI Falls Below Expectations in March

Factory gate prices in China fell deeper into deflation during the month of March as a result of the coronavirus outbreak.

Arslan Butt•Friday, April 10, 2020•1 min read

China's PPI Falls Below Expectations in March

Factory gate prices in China fell deeper into deflation during the month of March as a result of the coronavirus outbreak. According to data released by the NBS, China’s PPI declined by 1.5% YoY in March, after falling by 0.4% in February and coming in worse than economists’ forecast of -1.1%.

The decline in PPI was more pronounced as a result of the sudden crash in oil and commodities prices globally. Meanwhile, consumer inflation also declined in March, as a result of stringent control measures implemented by the government, while core CPI remained less affected.

China is slowly working its way back towards normalcy as factories and workplaces reopen and Wuhan, the epicenter of the coronavirus pandemic, emerges out of lockdown. China’s Q1 2020 GDP is widely expected to reveal a deep contraction in the economy, while the economic outlook for the remainder of the year also remains bleak as the pandemic rages on across the rest of the world.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.