In March, China experienced a second consecutive month of decreasing consumer prices and ongoing producer deflation. There is a growing sense of cautiousness regarding the economic future due to escalating tariff risks.

The National Bureau of Statistics reported that the consumer price index dropped by 0.1% compared to the previous year, marking a slower decrease than February's 0.7% drop. This was lower than the expected flat prices as per a Reuters poll.

On a monthly basis, the CPI fell by 0.4%, worsening from February's 0.2% decline and missing the predicted 0.3% drop.

Meanwhile, the producer price index saw a 2.5% decline in March compared to the previous year, deepening from February's 2.2% fall and falling short of the projected 2.3% decrease.