On May 11, China’s National Bureau of Statistics released April 2026 price data: the CPI rose 1.2% year-on-year and 0.3% month-on-month; the PPI increased 2.8% YoY and 1.7% MoM, both expanding from March, signaling a moderate inflation recovery. The CPI pickup was mainly driven by strong service consumption during the holiday and higher domestic energy prices amid rising international oil prices; food prices fell 1.6% YoY, with pork prices edging down, dragging overall gains. The PPI rebound benefited from higher commodity prices and marginal improvement in industrial demand, with extractive and raw material industries leading the gains. The People’s Bank of China’s Q1 monetary policy report stressed that inflation pressures are generally manageable, maintaining a moderately accommodative stance to balance domestic demand recovery and price stability. The market believes moderate inflation recovery leaves room for policy easing, and subsequent consumption and industrial rebounds are expected to continue, supporting steady economic recovery.