China’s consumer prices keep rising after holiday spending surge
The consumer price index rose 0.8 per cent in the first two months of 2026, though analysts remain concerned about long-term deflation risks
China’s consumer prices rose during the first two months of the year as a longer-than-usual Chinese New Year holiday drove a surge in spending, though analysts cautioned that Beijing might need to implement stronger measures to boost demand to sustain the recovery.
The national consumer price index (CPI), a crucial gauge of inflation, rose by 0.8 per cent year on year during the January-February period, according to data released by the National Bureau of Statistics (NBS) on Monday.
Readings for the first two months are typically grouped together to reduce distortions from the Chinese New Year holiday period, which began in January last year and took place in February this year.
In February, consumer prices rose 1.3 per cent year on year – the largest monthly jump recorded in around three years – which the bureau largely attributed to the different timing of the extended break and a recovery in demand.
The monthly reading also beat market expectations for a 0.93 per cent increase, according to economists polled by financial data provider Wind, which did not provide a forecast for the January-February period.