0904 GMT - Chinese consumer and factory-gate prices could face further headwinds from the U.S. trade war, UOB economist Ho Woei Chen writes in a note. The bank now expects China's consumer- and producer-price indexes to be flat and decline 2.0%, respectively, in 2025. That compares with its previous forecasts for the CPI to rise 0.9% and the PPI to fall 1.2% this year. The economist notes that both indicators fell in March, weighed by weak consumer-good and food prices, lower international oil prices and price pressures in exporting industries. Economic risks have risen sharply over the past week following the escalating tit-for-tat tariff fight between the U.S. and China, she says. The additional levies on Chinese exports may cause an up to 2 percentage point drag on GDP growth this year, she adds. As a result, UOB expects the PBOC to front-load monetary-policy easing to stabilize markets. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

April 10, 2025 05:05 ET (09:05 GMT)

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