#TradeWarEases

In April, prices in China rose more slowly for the third month in a row, and factory prices saw their biggest drop in six months. This happened while China was still dealing with a tough trade war with the U.S.

According to government data, consumer prices (CPI) were down 0.1% compared to last year, matching what experts expected. Compared to March, they were slightly up by 0.1%.

This shows that people in China are still not spending much, something the government has been trying to fix for the last two years. Now, all eyes are on new government spending plans to boost shopping and consumption.

Interestingly, this inflation news came right before the U.S. and China announced progress in trade talks—possibly even a trade deal. If true, it could mean fewer U.S. tariffs on Chinese goods, which have been hurting the economy.

The problem was even clearer in factory prices (PPI), which fell 2.7% compared to last year—the biggest drop in six months. Chinese factories were hit by fewer orders from abroad and weaker demand at home.

However, things might get better in May, thanks to more local spending during the Labour Day holiday and the hope of a solid trade deal with the U.S.

source: investing.com