China's January CPI rose 0.5% year-on-year, while PPI fell 2.3% year-on-year

In January, influenced by the Spring Festival, the national CPI growth rate expanded, and the core CPI, excluding food and energy prices, rose for the fourth consecutive month. Industrial production was in the off-season, and the PPI decreased year-on-year, with the decline rate the same as last month.

On February 9, the National Bureau of Statistics released data showing that in January 2025, the national CPI growth rate expanded, changing from flat last month to an increase of 0.7% month-on-month, and the year-on-year growth rate expanded from 0.1% last month to 0.5%. The core CPI, excluding food and energy prices, rose for the fourth consecutive month, increasing by 0.5% month-on-month and 0.6% year-on-year, with both growth rates expanding compared to last month.

In January 2025, the national producer prices for industrial producers and purchase prices both decreased by 2.3% year-on-year; both decreased by 0.2% month-on-month.

Dong Lijuan, chief statistician of the Urban Department of the National Bureau of Statistics, interpreted:

“In January, the prices of food, tobacco, and alcohol increased by 0.6% year-on-year, contributing approximately 0.16 percentage points to the CPI increase. Among food, the prices of livestock meat increased by 2.5%, contributing approximately 0.08 percentage points to the CPI increase, with pork prices rising by 13.8%, contributing approximately 0.17 percentage points to the CPI increase; fresh vegetable prices increased by 2.4%, contributing approximately 0.05 percentage points to the CPI increase; aquatic product prices increased by 1.2%, contributing approximately 0.02 percentage points to the CPI increase; fresh fruit prices increased by 0.6%, contributing approximately 0.01 percentage points to the CPI increase; grain prices decreased by 1.4%, contributing approximately 0.03 percentage points to the CPI decrease.

Month-on-month, the PPI decreased by 0.2%, with the decline rate expanding by 0.1 percentage points compared to last month. Among them, the prices of production materials changed from flat last month to a decrease of 0.2%; the prices of living materials changed from a decrease of 0.1% last month to flat. During the Spring Festival, coal supply was well guaranteed, and power plants had sufficient coal reserves, leading to a 2.2% decrease in the prices of coal mining and washing industries. Affected by holidays and low-temperature weather, some real estate and infrastructure projects were partially suspended, leading to a decline in demand for building materials, with prices in the black metal smelting and rolling industries decreasing by 0.9%, and prices in the non-metallic mineral products industry decreasing by 0.6%.”

January CPI increased by 0.5% year-on-year, with an expanded growth rate

In January 2025, the national consumer price index increased by 0.5% year-on-year. Among them, urban areas increased by 0.6%, and rural areas increased by 0.3%; food prices increased by 0.4%, and non-food prices increased by 0.5%; consumer goods prices increased by 0.1%, and service prices increased by 1.1%.

In January, the national consumer price index increased by 0.7% month-on-month. Among them, urban areas increased by 0.8%, and rural areas increased by 0.5%; food prices increased by 1.3%, and non-food prices increased by 0.6%; consumer goods prices increased by 0.6%, and service prices increased by 0.9% In January, the prices of food, tobacco, and alcohol rose by 0.6% year-on-year, contributing approximately 0.16 percentage points to the CPI (Consumer Price Index) increase. Among food items, the prices of livestock products increased by 2.5%, contributing approximately 0.08 percentage points to the CPI increase, with pork prices rising by 13.8%, contributing approximately 0.17 percentage points; fresh vegetable prices rose by 2.4%, contributing approximately 0.05 percentage points; aquatic product prices rose by 1.2%, contributing approximately 0.02 percentage points; fresh fruit prices rose by 0.6%, contributing approximately 0.01 percentage points; while grain prices fell by 1.4%, contributing approximately 0.03 percentage points to the CPI decrease.

The other seven major categories of prices saw five increases and two decreases year-on-year.

Among them, prices for other goods and services, education, culture, and entertainment, and clothing rose by 5.4%, 1.7%, and 1.1%, respectively, while healthcare and housing prices rose by 0.7% and 0.1%, respectively; prices for daily necessities and services, and transportation and communication fell by 1.1% and 0.6%, respectively.

In January, the prices of food, tobacco, and alcohol rose by 0.9% month-on-month, contributing approximately 0.26 percentage points to the CPI increase. Among food items, fresh vegetable prices rose by 5.9%, contributing approximately 0.12 percentage points; fresh fruit prices rose by 3.3%, contributing approximately 0.07 percentage points; aquatic product prices rose by 2.7%, contributing approximately 0.05 percentage points; livestock product prices rose by 0.4%, contributing approximately 0.01 percentage points, with pork prices rising by 1.0%, contributing approximately 0.01 percentage points.

The other seven major categories of prices saw four increases, two unchanged, and one decrease month-on-month.

Among them, transportation and communication, and other goods and services prices rose by 1.7% and 1.6%, respectively, while education, culture, and entertainment, and daily necessities and services prices rose by 1.5% and 0.7%, respectively; housing and healthcare prices remained unchanged; clothing prices fell by 0.4%.

Affected by factors such as the Spring Festival holiday, PPI fell by 2.3% year-on-year

In January, the prices of industrial producers' ex-factory prices saw a decline of 2.6% in the prices of production materials, contributing approximately 1.95 percentage points to the overall level of industrial producers' ex-factory prices.

Among them, the prices in the mining industry fell by 4.9%, the prices in the raw materials industry fell by 1.9%, and the prices in the processing industry fell by 2.7%. The prices of living materials fell by 1.2%, contributing approximately 0.31 percentage points to the overall level of industrial producers' ex-factory prices. Among them, food prices fell by 1.4%, clothing prices fell by 0.1%, general daily necessities prices rose by 0.5%, and durable consumer goods prices fell by 2.6%

In the industrial producer purchase prices, the prices of black metal materials decreased by 8.9%, fuel and power prices decreased by 5.2%, chemical raw materials prices decreased by 4.1%, agricultural and sideline products prices decreased by 3.3%, building materials and non-metallic prices decreased by 2.3%, and textile raw materials prices decreased by 1.4%; the prices of non-ferrous metal materials and wires increased by 10.9%.

In January, in the industrial producer ex-factory prices, the prices of production materials decreased by 0.2%, affecting the overall level of industrial producer ex-factory prices to decrease by about 0.17 percentage points. Among them, the mining industry prices decreased by 0.2%, raw materials industry prices remained stable, and processing industry prices decreased by 0.3%. The prices of living materials remained stable. Among them, food prices decreased by 0.2%, clothing prices decreased by 0.2%, general daily necessities prices decreased by 0.1%, and durable consumer goods prices increased by 0.2%.

In the industrial producer purchase prices, the prices of agricultural and sideline products decreased by 0.4%, black metal materials prices decreased by 0.3%, chemical raw materials and textile raw materials prices both decreased by 0.2%, and fuel and power prices, non-ferrous metal materials and wires, building materials and non-metallic prices all decreased by 0.1%.