China Inflation Rate Hits 21-Month High

China’s annual inflation eased sharply to 0.2% in January 2026 from 0.8% a month earlier, marking the lowest print since October and missing market expectations of 0.4%. Food prices fell for the first time in three months (-0.7% vs 1.1% in December), dragged by drops in pork, eggs, and cooking oils. Non-food inflation slowed (0.4% vs 0.8%), despite ongoing consumer trade-in programs. Healthcare inflation slowed slightly (1.7% vs 1.8%), education cost was flat after a 0.9% rise previously, while housing (-0.1% vs -0.2%) and transport (-3.4% vs -2.6%) saw further declines. Clothing prices, however, accelerated (1.9% vs 1.7%). NBS statistician Dong Lijuan said the moderation in January inflation was mainly due to a high base and sharper energy price drops. Meanwhile, core inflation, excluding food and energy, rose 0.8% year-on-year, the weakest in six months after 1.2% in December and November. Monthly, CPI increased 0.2%, matching the December level but undershooting the 0.3% consensus.

China’s annual inflation rate edged higher to 0.8% in December 2025 from 0.7% in the prior month, marking the highest level since February 2023 but falling short of market forecasts for 0.9%. The latest result also pointed to the third straight month of consumer inflation, with food prices rising the most in 14 months (1.1% vs 0.2% in November), driven by sharper price increases in fresh vegetables and fresh fruit. Meanwhile, non-food inflation remained steady (at 0.8%), helped by ongoing consumer trade-in programs. Prices continued to rise for clothing (1.7% vs 1.9%), healthcare (1.8% vs 1.6%), and education (0.9% vs 0.8%). In contrast, housing prices fell 0.2% after being flat previously, while transport costs dropped further (-2.6% vs -2.3%). Core inflation, which excludes food and energy, held at 1.2% yoy, staying at its highest in 20 months. Monthly, the CPI rose 0.2%, after a 0.1% drop in November. For the whole year, inflation was flat, missing the official target of around 2%.

China’s annual inflation rate picked up to 0.7% in November 2025 from 0.2% in the prior month, aligning with market consensus and marking the highest level since February 2024. Food prices rose for the first time in ten months (0.2% vs -2.9% in October), supported by rebounds in prices of fresh vegetables and fresh fruit, coupled with a less steep drop in pork. Also, non-food inflation increased further (0.8% vs 0.9%), lifted by the ongoing consumer trade-in programs. Prices continued to rise for clothing (1.9% vs 1.7%), healthcare (1.6% vs 1.4%), and education (0.8% vs 0.9%). Meantime, housing prices were flat after edging up 0.1% previously, while transport costs fell further (-2.3% vs -1.5%). Core inflation, which excludes food and energy, rose 1.2% yoy, matching October's pace and remaining at its highest level in 20 months. On a monthly basis, consumer prices fell 0.1%, after an October reading and forecasts of a 0.2% rise, marking the first drop in five months.