China’s consumer inflation rose at its fastest annual pace in more than two and a half years in December 2025. The consumer price index increased 0.8% year on year and 0.2% from November, mainly driven by higher food prices.
Despite this December rise, overall consumer inflation for the whole of 2025 remained flat. Officials said the recent pickup shows early signs of recovery.
Economists expect consumer prices to improve in 2026 as China’s policies to boost domestic demand, modernize industry, and manage excess capacity start to take effect.
Meanwhile, producer prices continued to fall. China’s producer price index dropped 2.6% for the year, though the decline narrowed to 1.9% in December, suggesting pressure on factory prices is easing.
Authorities said macroeconomic policies are beginning to stabilize prices in some sectors as market reforms progress.
Credit : CGTN
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