China's consumer price index (CPI) rose 1.0% month-on-month and 1.3% year-on-year in February, with core CPI excluding food and energy prices increasing 1.8% annually. Influenced by rising global commodity prices, robust demand in certain domestic sectors, and the sustained effects of macroeconomic policies, the national producer price index (PPI) increased 0.4% month-on-month while declining 0.9% year-on-year, marking a continued narrowing of the decline.
Data released on March 9 showed:
- China's February CPI rose 1.3% year-on-year, the highest rate in nearly three years, compared to a previous reading of just 0.2%. - The month-on-month CPI increase expanded from 0.2% in the previous month to 1.0%, the highest in nearly two years. - Core CPI, excluding food and energy prices, increased 1.8% year-on-year.
- PPI fell 0.9% year-on-year, compared to a previous decline of 1.4%, marking the third consecutive month of narrowing declines. - PPI rose 0.4% month-on-month, matching the previous month's increase and marking the fifth consecutive monthly gain.
From a month-on-month perspective, the national CPI increase expanded from 0.2% in the previous month to 1.0%, the highest in nearly two years. This was primarily driven by extended holiday consumption demand, with service prices rising significantly above seasonal levels. Service prices increased 1.1%, contributing approximately 0.54 percentage points to the monthly CPI increase. Key contributors included airfares, vehicle rentals, travel agency fees, and hotel accommodation, which rose 31.1%, 24.7%, 15.8%, and 7.3% respectively, collectively accounting for over 30% of the total CPI increase. Pet services, vehicle maintenance, home services, movie tickets, and dining-out prices also saw notable increases.
Industrial consumer goods prices rose 0.4%, with gold jewelry and gasoline prices increasing 6.2% and 3.1% respectively due to higher international prices. Despite a 1.9% increase in food prices, the rise remained below seasonal levels, contributing 0.33 percentage points to the monthly CPI. Seafood, fresh fruits, and pork prices rose 6.9%, 4.0%, and 4.0% respectively, while fresh vegetable prices declined 0.1% due to ample supply.
Year-on-year, the CPI increase expanded from 0.2% to 1.3%, the highest in nearly three years, influenced by holiday timing and recovering consumption demand. Service prices rose 1.6%, with significant increases in airfares, rentals, travel fees, and accommodation. Industrial consumer goods prices increased 1.1%, led by a 76.6% surge in gold jewelry prices. Food prices turned positive, rising 1.7%, with fresh vegetables, beef, lamb, and fresh fruits being major contributors. Pork and egg prices continued to decline but at a slower pace.
The national PPI rose 0.4% month-on-month, matching the previous month's gain and marking the fifth consecutive increase. Key drivers included rising international non-ferrous metal and crude oil prices, which lifted domestic related sectors. Computing demand growth also boosted prices in sectors like computer and communication equipment.
Year-on-year, PPI declined 0.9%, with the drop narrowing for the third consecutive month. Positive trends were observed in industries related to modern industrial systems, such as electronic components, green transformation, and high-end equipment. Improved market competition秩序 also supported price stabilization in sectors like photovoltaic devices and lithium-ion batteries, which saw their first monthly price increase in 33 months.
In February, the national CPI rose 1.3% year-on-year and 1.0% month-on-year. Urban prices increased 1.4% year-on-year, while rural prices rose 0.9%. Food prices climbed 1.7%, and non-food prices increased 1.3%. The average CPI for January-February was up 0.8% compared to the same period last year.
By category, food, tobacco, alcohol, and dining-out prices rose 1.4% year-on-year, contributing 0.41 percentage points to CPI. Fresh vegetables, aquatic products, and fresh fruits were key drivers, while egg and livestock meat prices declined. Among other categories, prices for other goods and services, household items, and education/culture/entertainment saw significant increases.
Month-on-month, food, tobacco, alcohol, and dining-out prices rose 1.4%, contributing 0.40 percentage points to CPI. Aquatic products, fresh fruits, and livestock meat were major contributors. Other categories, including other goods and services, transportation/communication, and education/culture/entertainment, also recorded increases.
The national PPI fell 0.9% year-on-year in February, with the decline narrowing by 0.5 percentage points. Month-on-month, PPI rose 0.4%. Industrial purchasing prices declined 0.7% year-on-year but rose 0.7% month-on-month. The average PPI for January-February was down 1.2% year-on-year.
By sector, production material prices fell 0.7% year-on-year, while living material prices declined 1.6%. Purchased fuel and power prices dropped 8.4%, but non-ferrous metal materials and wire prices surged 21.3%. Month-on-month, production material prices rose 0.5%, with mining, raw materials, and processing industries all recording gains. Living material prices remained stable.