Investing.com - Producer prices in China were broadly in line with expectations for March, but consumer prices were slightly lower than analysts’ forecasts, the National Bureau of Statistics (NBS) reported on Thursday.
Producer price index in March rose 0.4% from a year earlier, in line with expectations. In February, the producer prices were increased 0.1%.
The consumer price index increased 2.3% from a year earlier, the NBS said, just lower than the 2.4% rise predicted by economists but higher than the 1.5% gain in the previous month.
Some analysts forecast pig production in China, which accounts for about half of the world's pork, will fall by around 30% this year due to the spread of African swine fever, which would send meat prices soaring and in turn drives up the CPI.
The world's second-largest economy is growing at its weakest pace in almost three decades amid a year-long trade war with the U.S., but hopes of a potential trade deal grew after multiple rounds of trade negotiations between the two sides in the past few months.
In an interview with CNBC on Wednesday, U.S. Treasury Secretary Steven Mnuchin said that China and the U.S. have made progress on a trade deal, and that they have agreed on “an enforcement mechanism” to police any agreement they reach.
“We’ve agreed that both sides will establish enforcement offices that will deal with the ongoing matters,” Mnuchin said, adding that the meeting with Chinese Vice Premier Liu He on Tuesday was “productive.”
“We went into late last night, and we have another call scheduled for tomorrow morning ... we still have some important issues to address, but both sides are working very hard on this agreement,” Mnuchin said.