MNI BRIEF: China Expects Moderate Inflation In 2021: Official

China's consumer inflation will likely remain moderate throughout the year, as higher factory gate prices haven't flowed through yet, Liu Aihua, a spokeswoman for the National Bureau of Statistics said Friday.

CPI reversed two months of negative readings in March to rise 0.2% y/y, but is likely to remain modest as pork and grain prices are still muted by the rapid recovery of hog inventory and better grain production this year, said Liu. Meanwhile, China is capable of ensuring a sufficient supply of consumer goods, and service price increases will be moderate with the gradual recovery of supply.

PPI rose to a near three-year high of 4.4% y/y in March on the back of rising international commodity prices, but the impact from 'upstream' industries passing costs has been limited, Liu said, noting higher costs were capped as further capacity came on line.