China's headline consumer price index rose 0.3 percent on the year in April after advancing 0.1 percent on the year in March. Excluding the impact of lunar new year holidays earlier in the year, headline inflation is now at its highest level since March 2023. The index rose 0.1 percent on the month after falling 1.0 percent previously. Producer price inflation data also published today showed ongoing weakness in price pressures.

Today's data were slightly stronger than the consensus forecast for a year-over-year increase of 0.2 percent in the CPI. The China RPI and RPI-P rose from zero to plus 29 and plus 40 respectively, indicating that recent Chinese data in sum are now coming in above consensus forecasts.

April's year-over-year rate is expected to remain flat, at 0.2 percent versus March's 0.1 percent rate. China's CPI last peaked in January last year at 2.1 percent.

Consumer Price Index (CPI) is an index that measures changes over time in the price level of consumer goods and services purchased by residents, which reflects the overall changes in price level.

Consumer prices account for a majority of overall inflation, which is carefully monitored by investors worldwide. Investors worldwide monitor Chinese price changes closely. A pickup in inflation could mean an increase in interest rates is in the offing from the People's Bank of China while an easing could mean looser monetary policy. The monthly CPI is broken down by 8 categories with more detail available on the following day including aggregate information by urban and rural areas and provinces.

The CPI measures the change in the level of prices for a specified basket of goods and services normally purchased by urban and rural residents. Approximately 226 areas throughout the country are covered, including 80 counties and 146 cities. The current CPI is an annually chained Laspeyres price index and has been available since 2001. From 1978 to 2000, the index was compiled using current year weights for most items.