China’s consumer price index (CPI) increased by 1.3 percent year-on-year in February, mainly due to the impact of the Spring Festival holiday, as per official data. The core CPI, excluding food and energy prices, saw a 1.8 percent rise compared to the previous year, according to the National Bureau of Statistics (NBS). The producer price index (PPI), reflecting factory gate costs, decreased by 0.9 percent year-on-year in the same month, with a continuous narrowing of the decline attributed to higher global commodity prices and strong demand in select domestic industries, as well as effective macroeconomic policies, stated NBS statistician Dong Lijuan.
Data indicated that the CPI increase in February expanded to 1.3 percent from 0.2 percent the previous month, the highest surge in nearly three years, influenced by the Spring Festival shift and increased consumption demand recovery. Service prices in February rose by 1.6 percent, contributing around 0.75 percentage points to the year-on-year CPI increase, with notable increases in airline tickets, transportation rentals, travel agency fees, and hotel accommodation prices. Additionally, prices of pet services, vehicle repair, household services, and food deliveries also saw increases last month.
Fresh vegetables, beef, mutton, and fresh fruits prices rose by 5.9 percent to 10.9 percent in February, contributing approximately 0.41 percentage points to the year-on-year CPI rise. On a month-on-month basis, CPI increased by 1 percent in February, the highest in nearly two years. Industrial consumer goods prices rose by 0.4 percent, a 0.1 percentage point increase from the previous month. China’s PPI declined by 0.9 percent compared to the same period last year, with a narrowing rate of decrease for three consecutive months.
