China's consumer price index

China's consumer inflation eased in March to an 18-month low, leaving room for further macroeconomic policy stimulus in the coming months, analysts said on Tuesday.

China's consumer price index, a main gauge of inflation, climbed 0.7 percent from a year earlier in March, down from 1 percent in February, said the National Bureau of Statistics.

Lu Ting, chief China economist at Nomura, warned that the falling inflation readings in March suggest that the post-COVID recovery momentum remains weak.

After China's CPI increased by 2 percent in 2022, China has set an annual consumer inflation target of around 3 percent for 2023.

Looking ahead, Lu said his team expects policymakers to step up support in the coming months, as the low inflation readings could provide more room for stimulus.