Daijiworld Media Network - Beijing

Beijing, Jan 9: Consumer prices in China rose at their fastest annual pace in more than two-and-a-half years in December 2025, official data released on Friday showed, even as overall inflation for the year remained flat.

According to figures from the National Bureau of Statistics (NBS), the consumer price index (CPI) increased by 0.2 per cent on a month-on-month basis in December and rose 0.8 per cent year-on-year. The annual increase was up by 0.1 percentage point from November, marking the highest level since March 2023.

NBS chief statistician Dong Lijuan said the acceleration in year-on-year CPI growth was largely driven by higher food prices, which climbed 1.1 per cent compared to the same period last year.

Despite muted inflation through most of 2025, economists are optimistic about a gradual recovery in consumer prices. Wen Bin, chief economist at China Minsheng Bank, said inflation is expected to improve this year as policies aimed at boosting domestic demand take effect, construction of a modern industrial system gathers momentum, and measures to regulate capacity in key industries and optimise market competition continue, according to yicai.com.

The data also showed that China’s producer price index (PPI), which tracks factory-gate prices, declined by 2.6 per cent year-on-year in 2025. In December alone, PPI fell 1.9 per cent year-on-year, with the pace of decline continuing to narrow.

“Domestic macroeconomic policies are gradually yielding results, with positive price changes emerging in some sectors,” Dong said, adding that price declines in related industries have eased as efforts to build a unified national market progress.