China has avoided the inflation shock that afflicted most Western economies last year, despite multiple challenges such as mounting imported inflationary pressures and the resurgence of domestic COVID-19 cases.
China’s consumer price index (CPI), a main gauge of inflation, rose 2 percent in 2022 compared with 2021 — well below an official target of around 3 percent — while China’s producer price index rose 4.1 percent in 2022, according to data from the National Bureau of Statistics.
China’s increases are just a fraction of those reported in the United States, the eurozone, and Britain, and also substantially lower than those seen in other emerging economies such as India, Brazil, and South Africa.
“Stable domestic consumer prices are in stark contrast to the global spike,” said Wan Jinsong, an official with the National Development and Reform Commission (NDRC).
Mild inflation confirms China’s role as a stabilizer for world prices and clears the way for the government to adopt stimulus measures to rev up the economy.
STABILIZE FOOD PRICES
A steady food market is crucial for ensuring overall price stability, as food prices account for nearly one-third of China’s