China’s annual inflation rate climbed to 0.5% in January 2025
China’s annual inflation rate climbed to 0.5% in January 2025 from 0.1% in December, surpassing market expectations of 0.4%. This marked the highest level since August 2024, driven by seasonal effects from the Lunar New Year at the end of the month. The latest result also reflected the impact of recent government stimulus measures and the central bank’s accommodative monetary policy to support the economy. Food prices rebounded (0.4% vs -0.5% in December), largely due to faster price increases for pork (13.8% vs. 12.5%) and fresh vegetables (2.4% vs. 0.5%). Simultaneously, non-food prices notably quickened (0.5% vs 0.2%), reflecting further rises in housing (0.1% vs 0.1%), healthcare (0.7% vs 0.9%), and education (1.7% vs 0.9%), along with a slower decrease in transport cost (-0.6% vs -2.2%). Monthly, the CPI increased by 0.7%, picking up from a flat reading in December but falling short of estimates of 0.8%. It represented the highest print in 11 months.(Cay)
Source: Trading Economi
