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CPI fell exacerbate Chinese economic slowdown fears

Financial Times said that China's consumer price index (CPI) continued to fall, highlighting weak consumer demand, increased Chinese economic slowdown fears.The article points out, China March CPI fell 0.5% MoM, it is continued for 25 consecutive months of deflation. In addition, the credit slowdown, housing prices fell, fully explain the world's second largest economy, sluggish performance in the first quarter of this year. Analysts also reduce  China's economic  expected  growth to be 7.4%, which is considered a signal of China's economic slowdown. Mizuho Securities analysts said,it is not only the producer price index (PPI) display weaker investment, CPI also reflects the retail slump. Government needs to relax fiscal and monetary policy.  Royal Bank of Scotland economist pointed out that the pressure of the economic downturn in the field of heavy industry has been highlighted because it is affected  from  the raw material prices and overcapacity deeply.
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