Consumer prices rise slower than expected
Producer prices fall at fastest pace since June 2020
Weak prices add to case for policy easing

BEIJING, April 11 Reuters China39;s consumer inflation hit an 18month low and factorygate price declines sped up in March as demand stayed persistently weak, shoring up the case for policymakers to take more steps to support the uneven economic recovery.

In contrast to surging prices globally, China39;s retail and producer inflation has remained anaemic as the consumer and industrial sectors struggle to recover from their pandemic hit. Analysts now think consumer inflation could fall short of Beijing39;s official targets this year.

The consumer price index CPI rose 0.7 yearonyear, the slowest pace since September 2021 and weaker than the 1.0 gain in February, the National Bureau of Statistics NBS said on Tuesday. The result fell short of the 1.0 rise tipped in a Reuters poll.

China39;s March inflation report suggests that the Chinese economy is running a disinflation process, which points to bigger room for monetary policy easing to boost demand, said Zhou Hao, economist at Guotai Junan International.

The producer price index PPI fell 2.5 yearonyear, the fastest pace since June 2020 and compared with a 1.4 drop in February. The PPI has fallen for six straight months.

China39;s yuan hit a morethanoneweek low against the dollar on Tuesday morning following the data, as investors stepped up bets domestic interest rates could be…