China’s consumer price index (CPI) rose 1.3% year-on-year in February 2026, marking a steady climb in inflation amid heightened consumer activity during the Lunar New Year period, according to data released by the National Bureau of Statistics (NBS). Core CPI, excluding volatile food and energy prices, increased 1.8% annually, signaling sustained demand in key sectors.
Month-on-month, the CPI surged 1% in February — the highest monthly growth in two years — up from 0.2% in January. NBS statistician Dong Lijuan attributed the spike to robust holiday-driven demand, particularly in services such as travel and hospitality, which saw notable price increases.
Meanwhile, the producer price index (PPI) declined 0.9% year-on-year, though the contraction narrowed for the third consecutive month. Analysts suggest this reflects gradual recovery in industrial activity and easing deflationary pressures, offering cautious optimism for the Chinese mainland’s economic trajectory this year.
