China Inflation Steady

China’s consumer inflation held steady in March, but wholesale prices remained entrenched in deflation, signalling a favorable environment for further government stimulus.

The consumer price index (CPI) rose 1.4 percent on year, above expectations of a 1.3 percent rise predicted in a Reuters poll and following a 1.4 percent rise in February.

Wholesale prices, or the producer price index (PPI), fell 4.6 percent in March, better than the average forecast of a 4.8 percent decline, and after dropping 4.8 percent in February.