China's Inflation and Economy Flash Warning Signs, Fueling Calls for Policy Action

• China's consumer price index (CPI) grew just 0.1% year-on-year in March, lower than expected and adding to concerns about weak domestic demand

• Persistently low inflation makes it unlikely China will meet its 3% CPI target for 2024, fueling calls for policy easing

• Property slump and weak job market hurting consumer spending; bolder policies needed to tackle real estate crisis

• Producer price index declined 2.8% in March, showing oversupply and lackluster demand challenging manufacturers

• Core CPI rose just 0.6% in March, underscoring weak consumer sentiment and early signs of industrial overcapacity