FX.co ★ China Food Inflation Slows Sharply

China’s food prices rose 0.3% year-on-year in March 2026, a sharp deceleration from the 1.7% increase in February—the fastest pace since October 2024—as supply conditions improved and earlier weather-related pressures eased. Price gains moderated significantly for fresh vegetables (4.9% vs. 10.9% in February) and fresh fruit (4.0% vs. 5.9%), indicating better seasonal availability and a normalization following previous price spikes. At the same time, pork prices, a key household staple, declined more deeply (-11.5% vs. -8.6%), underscoring persistent oversupply and intensifying deflationary pressure after a prolonged, supply-driven downturn. Elsewhere, prices remained weak for eggs (-3.1% vs. -2.9%), cooking oils (-0.8% vs. -1.1%), and dairy products (-0.7% vs. -1.1%), reflecting subdued demand and comfortable inventory levels.