China experienced a rise in inflation in December 2025, reaching its highest level in 34 months, with the consumer price index (CPI) increasing by 0.8% year on year, as per data from the National Bureau of Statistics (NBS). This uptick was attributed to a 0.1 percentage point expansion compared to the previous month, mainly driven by food price growth, which saw a 1.1% increase year on year.
The core CPI, excluding food and energy prices, also saw a 1.2% rise from the previous year. Urban regions in China recorded a 0.9% increase in CPI, surpassing the 0.6% rise in rural areas. Non-food prices showed more moderate growth at 0.8% year on year.
In 2025, the CPI remained steady compared to the previous year, with the Chinese government targeting a 2% CPI increase to balance supply and demand through policy and reform measures, while keeping price levels stable. Monthly, the CPI increased by 0.2% in December, driven by rising prices of industrial consumer goods, excluding energy, which grew by 0.6% in the month.
The effects of policies boosting consumption, combined with increased shopping and entertainment demand during the New Year period, led to price hikes in communication devices, maternal and infant products, recreational goods, and household appliances, with growth rates ranging from 1.4% to 3% on a monthly basis.
