China’s consumer prices rose for the third consecutive month in April, while producer prices continued to decline, indicating improved domestic demand amid Beijing’s efforts to stabilize the economy. Consumer prices increased by 0.3% YoY, exceeding expectations, while core inflation, excluding food and fuel, rose to 0.7%. Despite these gains, concerns persist about the sustainability of this momentum due to cooling factory and services activity and an ongoing housing crisis. The producer price index fell by 2.5% in April, extending its decline for over a year. The central bank has pledged flexible monetary policies to support economic recovery, with the Politburo emphasizing the need for policy tools to boost growth, as meeting the 2024 growth target of about 5% remains challenging without further support.