China has curtailed a dramatic fuel price surge by capping gasoline and diesel increases at 420 yuan and 400 yuan per ton, far below projected 800 yuan and 770 yuan rises under its biweekly pricing system. The National Development and Reform Commission announced the adjustment takes effect at midnight, reflecting efforts to buffer consumers from energy-driven inflation tied to Middle East conflict disruptions. Since the March 23 price revision, global crude volatility has intensified, prompting authorities to maintain intervention measures to stabilize domestic markets. Consumer-price growth is expected to remain at 1.3% year-on-year in April, per a Wall Street Journal poll, as producer prices re-enter positive territory after three years of deflation.

Analysts caution that weak demand could transform supply-side price pressures into a drag on economic momentum, complicating policymakers' inflation management efforts.