China will release March inflation data on 10 April and is likely moderated on the falling prices of food after the Lunar New Year holiday.
"The March CPI inflation is seeing at 1.3% y/y from 1.4% in February as fresh vegetables and fruits fell m/m after holiday", says Standard Chartered research.
"We expect the PPI inflation rate to have continued to fall, although at a slower rate, to 4.6% y/y from4.8% in February, reflecting the recovery in global raw material prices", added Standard Chartered.
The lower inflation rate also reflects still-weak domestic demand amid China's economic slowdown. The subdued inflation environment is expected to allow room for further monetary policy easing in the coming months.
