China's consumer price index (CPI), a key measure of inflation, rose by 0.7% year-on-year in February, reversing January's 0.8% decline, according to the National Bureau of Statistics (NBS).
On a monthly basis, the CPI increased by 1% in February. The core CPI, which excludes volatile food and energy prices, saw a 1.2% year-on-year rise. This marks the highest increase since February 2022, driven by robust Spring Festival spending and rising international oil prices that pushed up domestic fuel costs.
Zhang Yu, chief macro analyst at Huachuang Securities, predicted the CPI growth, highlighting the impact of seasonal consumption patterns and external oil price pressures, as reported by China News Service.
Conversely, the industrial sector experienced a typical seasonal slowdown in February, intensified by the Spring Festival holiday. This led to a 0.2% month-on-month decline in the producer price index (PPI), consistent with the previous month's trend. Annually, the PPI decreased by 2.7%, indicating a slight acceleration in the decline.
The mixed economic indicators reflect China's ongoing balancing act between stimulating consumer demand and managing industrial output amid seasonal fluctuations and global market pressures.
Reference(s):
cgtn.com
