China’s consumer price growth slows ahead of Lunar New Year

February 11, 2026 (MLN): China’s consumer price growth slowed in January, missing forecasts, as measures to boost spending ahead of the Lunar New Year were rolled out.

Data from the National Bureau of Statistics (NBS) showed the consumer price index (CPI) rose just 0.2% year-on-year, down from December’s 0.8% and below the 0.4% increase expected, APP reported.

The slowdown highlights ongoing weakness in domestic consumption, a key challenge for the world’s second-largest economy since the end of the Covid-19 pandemic.

A series of measures are planned to stimulate spending during the holiday.

Local governments have set aside 2.05 billion yuan ($297 million) in vouchers, subsidies, and traditional red envelopes to benefit consumers over the nine-day Lunar New Year holiday, the longest in history.

Vice Minister of Commerce Sheng Qiuping said authorities will continue efforts to encourage domestic consumption, while it was noted that consumer inflation may rebound in February but deflationary pressures are likely to persist.

The producer price index (PPI) fell 1.4% YoY in January, the slowest decline since July 2024 and slightly better than the 1.5% drop forecast.

Month-on-month, the PPI grew 0.4%, reflecting improvements mainly in non-ferrous metals amid volatile global commodity markets.

Economic growth remains modest. China’s economy expanded 5% in 2025, meeting government targets but marking one of the slowest rates in decades.

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