China’s annual inflation rate slowed to 1.0% in March 2026, down from February’s more than three-year high of 1.3% and below market expectations of 1.2%. Food price inflation eased markedly (0.3% vs 1.7% in February), reflecting a sharp moderation in the costs of fresh vegetables and fruit and a deeper decline in pork prices.
Non-food inflation also edged down (1.2% vs 1.3%), although prices continued to rise for clothing (1.6% vs 1.9%), healthcare (1.9% vs 1.9%), and education (1.1% vs 2.0%). Transport costs rebounded (0.9% vs -0.7%), while housing costs remained in decline (-0.2% vs -0.2%).
On a monthly basis, the consumer price index (CPI) fell 0.7%, reversing February’s 1.0% increase and posting the first monthly drop since November, again coming in weaker than market forecasts of a 0.2% decline.
