FX.co ★ China’s CPI Swings Back Into Deflation in March, Falling 0.7% MoM

China’s consumer prices fell sharply in March 2026, with the Consumer Price Index (CPI) declining 0.7% month-on-month, according to data updated on 10 April 2026. The move marks a notable reversal from February 2026, when CPI rose 1.0% on a month-over-month basis.

The latest reading underscores renewed deflationary pressure in the world’s second-largest economy. On a month-over-month comparison, March’s “actual” change of -0.7% contrasts with February’s “previous” 1.0% increase, which had been measured against January’s price levels. The abrupt shift suggests that any early-year price momentum failed to carry through into March, raising fresh questions over the strength and durability of domestic demand.

Investors and policymakers will now be watching upcoming price data closely for signs of whether March’s negative reading is a temporary setback or the start of a more persistent deflationary trend, which could weigh on growth prospects and influence future policy decisions.