China’s consumer price index rose 1.3 percent year-on-year in February, marking the fastest increase in three years and the highest level since January 2023, official data released on Monday showed.
The National Bureau of Statistics reported that the CPI had climbed from a modest 0.2 percent rise in January.
Statistician Dong Lijuan attributed the sharp year-on-year jump mainly to the timing of this year’s Spring Festival holiday, which began in mid-February, more than two weeks later than in 2025.
A rebound in consumer demand also played a key role in lifting the index.
Services and food drive the increase
Service prices climbed 1.6 percent year-on-year in February, up sharply from a 0.1 percent gain the previous month, contributing roughly 0.75 percentage points to the overall CPI rise.
Within services, airfares jumped 29.1 percent, car rentals rose 19.8 percent, travel agency fees increased 12.5 percent, and hotel accommodation went up 5.4 percent, all reversing declines seen in January.
Other notable rises included pet services at 13 percent, vehicle repair and maintenance at 12 percent, housekeeping services at 6.3 percent, and takeaway food at 5.6 percent.
Food prices turned positive with a 1.7 percent year-on-year increase in February, compared with a 0.7 percent drop in January, adding about 0.3 percentage points to the CPI.
Fresh vegetables, beef, lamb and fresh fruits recorded gains between 5.9 percent and 10.9 percent, with all categories accelerating from the prior month and collectively contributing around 0.41 percentage points to the CPI rise.
On a month-on-month basis, the CPI advanced 1 percent in February, the strongest gain in nearly two years, following a 0.2 percent increase in January.
Core CPI, which strips out food and energy prices and offers a clearer view of underlying demand, rose 1.8 percent year-on-year, up from 0.8 percent in January.
Factory-gate deflation eases further
China’s producer price index, which tracks factory-gate prices, fell 0.9 percent year-on-year in February, a narrower decline than the 1.4 percent drop recorded in January.
Dong Lijuan noted that effective macroeconomic policies helped narrow the PPI decline, with certain industries showing positive price movements.
She pointed to the accelerated development of a modern industrial system, particularly the rapid growth of “Artificial Intelligence Plus” initiatives, which drove year-on-year price increases in related sectors.
Improved market competition also supported price stabilisation and recovery in some areas, she added.
On a month-on-month basis, the PPI held steady with a 0.4 percent rise in February, the same as in January.
