China’s Consumer Inflation Hits Three-Year HIGH as Producer Deflation Eases

China’s Consumer Inflation Hits Three-Year HIGH as Producer Deflation Eases

CHINA: China’s consumer price index (CPI) surged 1.3% year‑on‑year in February 2026, marking the largest increase in over three years, driven by strong spending during the extended Lunar New Year holiday. Core CPI, excluding food and energy, rose 1.8%, matching levels last seen in March 2019. Meanwhile, the producer price index (PPI) fell 0.9%, slower than expected, signalling easing deflationary pressures at the factory level. Policymakers maintained a 2% annual inflation target and lowered GDP growth expectations to 4.5–5%, while fiscal measures were introduced to support domestic consumption amid persistent global uncertainties.

Source: CNBC