China's inflation rate unexpectedly at 18-month low

ANKARA

China's inflation rate unexpectedly eased to an 18-month low in March, thanks to a slowdown in both food and non-food costs led by the country's reopening after an ease in coronavirus measures, according to data released on Tuesday.

Consumer prices increased 0.7% year-on-year in March, down from February's reading of 1%, the National Bureau of Statistics said.

The market expected consumer prices to rise 1% from a year ago in March.

Food inflation decreased to a 10-month low of 2.4% in March, down from 2.6% in February while non-food inflation fell to 0.3% versus 0.6%.

Core consumer prices, which exclude food and energy, gained 0.7% on an annual basis in March, after rising 0.6% in February.

On a monthly basis, China's Consumer Prices Index surprisingly dropped 0.3% in March, missing the market estimate of no change.