Economic Buzz: China inflation cools to 1.0% as food prices ease sharply

China?s annual inflation moderated to 1.0% in March, as a sharp deceleration in food prices weighed on headline CPI. Softer gains in fresh produce and a deeper decline in pork prices were key drivers behind the slowdown. Core inflation also eased notably, signaling a loss of underlying price momentum despite stable trends in services such as healthcare and education. Meanwhile, transport costs rebounded, partly offsetting persistent weakness in housing. On a monthly basis, CPI contracted by 0.7%, marking the first decline since November, highlighting fragile domestic demand even as authorities introduced fuel price controls to cushion the impact of rising global energy costs.

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