In April, Consumer Price Index (CPI) growth surpassed seasonal forecasts on a month-over-month basis, primarily fueled by surges in gold, travel, and imported beef prices. However, CPI fell year-over-year for the third consecutive month. The downward trend in the pig cycle, declining prices of second-hand goods, and subdued prices of clothing, alcoholic beverages, education, and domestic services – all weaker than seasonal norms – point to persistent weakness in demand. Meanwhile, Producer Price Index (PPI) fell year-over-year at an accelerated rate, dropping 0.4% month-over-month, impacted by tariffs and sluggish construction investment. The decline in Purchasing Managers' Index (PMI) purchase and ex-factory prices hints that the month-over-month decrease in PPI may continue to widen. Despite Sino-US tariff negotiations alleviating downside risks to exports, the issue of inadequate demand remains prominent. Thus, fiscal expansion aimed at supporting domestic demand remains pivotal for stabilizing prices.