The Consumer Price Index (CPI), a key gauge of inflation, rose by 3.5% in March, surpassing the expectations of many economists.

In a significant move that signals growing concern over China’s economic trajectory, Fitch Ratings has revised its outlook on China’s long-term foreign-currency issuer default rating to ‘negative’ from ‘stable’.

The decline in inflation comes as a relief to the Eurozone, which has been grappling with soaring prices, largely driven by an unprecedented combination of shocks.

Yellen’s comments come amid growing concerns over China’s economic practices, particularly its massive investment in industries where production is surging without adequate demand.