China’s consumer price index fell in February for the first time in over a year

China’s consumer prices fell 0.7 percent year-on-year in February 2025, beating market estimates for a 0.5 percent decline and reversing a 0.5 percent increase in the previous month.

This was the first consumer deflation since January 2024, amid a seasonally adjusted decline in demand following the Spring Festival in late January. Food prices fell by the most in 13 months, by 3.3 percent, compared with a 0.4 percent increase in January. Non-food prices fell by 0.1 percent after a 0.5 percent increase in January.

Core inflation, which excludes volatile food and fuel prices, fell 0.1 percent in February, compared with a 0.6 percent increase in January.

On a monthly basis, the consumer price index fell 0.2 percent, compared with expectations of 0.1 percent, the first decline since November last year after an 11-month high of 0.7 percent in January.

China’s producer prices fell 2.2 percent in February 2025, compared with a market forecast of 2.1 percent and after 2.3 percent declines in the previous two months. This was the slowest decline since August 2024, as Beijing continued its efforts to stimulate demand, despite producer deflation persisting for the 29th consecutive month due to price fluctuations in some raw materials and the impact of the Lunar New Year holiday at the end of January.