China Faces Economic Headwinds as Consumer Prices Slow, Property Crisis Persists

• China's consumer price index rose just 0.1% in March, lower than forecasted 0.4% and February's 0.7%, indicating challenges in stimulating domestic demand.

• Persistent property crisis continues dampening consumer and business confidence in China.

• Fitch revised China's long-term outlook to negative, citing pivot away from property-fueled growth introducing uncertainty.

• China set ambitious 5% economic growth target for 2022 but faces hurdles like real estate slowdown and waning investor confidence.

• Deflationary pressures persist in manufacturing sector as producer prices index declined 2.8% in March.