China's Consumer Prices Rise 0.7% in February... Uptrend Returns After 6 Months

China's consumer prices have turned to an upward trend for the first time in six months.

On the 9th, the National Bureau of Statistics of China announced that the Consumer Price Index (CPI) for February rose 0.7% compared to the same period last year. Compared to January, it increased by 1.0%.

This is the first rise in the CPI since August last year, surpassing expert forecasts of 0.3% and 0.7%, respectively.

It is expected to provide some relief to the Chinese economy, which has been struggling with weak demand, a real estate slump, and local government debt issues.

Since July last year, China’s prices have continuously declined except for a brief rise in August, following deflation concerns that emerged in 2021.

In particular, consumer prices in January fell 0.8% year-on-year, marking the largest drop in over 14 years.

However, the Producer Price Index (PPI) for February decreased by 2.7% year-on-year. The forecast was -2.5%.