China's inflation moderated after the Lunar New Year

China will release March inflation data on 10 April. CPI inflation is likely to have moderated to 1.3% y/y from 1.4% in February as prices of food, especially fresh vegetables and fruits, fell m/m after the Lunar New Year holiday.

The PPI inflation rate is expected to have continued to fall, although at a slower rate, to 4.6% y/y from 4.8% in February, reflecting the recovery in global raw material prices. 

"We think the lower inflation rate also reflects still-weak domestic demand amid China's economic slowdown. We expect the subdued inflation environment to allow room for further monetary policy easing in the coming months", Said Standard Chartered in a report on Thursday