In March, China’s Consumer Price Index (CPI) fell 0.4% month-on-month and 0.1% YoY, with the decline narrowing significantly. The drop was mainly driven by seasonal factors, lower food and oil prices, and reduced travel demand. However, core CPI — excluding food and energy — rose 0.5% YoY, signaling a rebound in service prices and industrial consumer goods. Meanwhile, the Producer Price Index (PPI) fell 0.4% from the previous month and 2.5% YoY due to lower international oil prices, seasonal energy demand, and soft raw material prices. Despite this, sectors tied to high-tech development and equipment upgrades showed positive price trends, supported by policy measures aimed at stimulating consumption and industrial investment.