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China Sees Modest Inflation Rise for Fourth Consecutive Month in January

According to China Daily, February 12, 2026

China’s consumer prices in January rose for the fourth straight month, while factory-gate price declines continued to ease, signaling a gradual stabilization in the world’s second-largest economy.

The National Bureau of Statistics (NBS) reported that the consumer price index (CPI), the country’s main inflation gauge, increased by 0.2 percent year-on-year in January, slowing from December’s 0.8 percent rise.

Chief statistician Dong Lijuan said the moderate increase was influenced by the timing of the Spring Festival holiday, which fell in February this year compared to January last year, creating a higher comparison base. “Consumer demand continued to recover in January, but energy price fluctuations and seasonal effects kept CPI growth moderate,” Dong noted.

Food prices fell 0.7 percent year-on-year, trimming roughly 0.11 percentage points from CPI growth. Within the category, fresh vegetables and fruits saw smaller increases than in previous months — up 6.9 percent and 3.2 percent, respectively — while pork and eggs declined by 13.7 percent and 10.6 percent. Energy costs fell 5 percent year-on-year, reducing CPI growth by around 0.34 percentage points.

On a month-on-month basis, CPI rose 0.2 percent in January, consistent with December. The core CPI, which excludes volatile food and energy items and is a better indicator of underlying supply-demand conditions, increased 0.8 percent year-on-year, down from 1.2 percent in December.

Meanwhile, the producer price index (PPI), which tracks factory-gate prices, fell 1.4 percent year-on-year in January, narrowing from December’s 1.9 percent decline. On a month-on-month basis, PPI rose 0.4 percent, accelerating from a 0.2 percent increase the previous month.

Analysts say the data reflect a moderate inflation environment amid stable domestic demand recovery, with potential implications for China’s monetary and fiscal policy in the early months of 2026.

 

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