China’s consumer prices saw a noticeable rise in January, all thanks to the festive spending during the Chinese New Year! According to the National Bureau of Statistics (NBS), the Consumer Price Index (CPI)—a key measure of inflation—went up by 0.5% compared to the same time last year. That’s a jump from the 0.1% increase in December.
So, what’s behind this uptick? NBS chief statistician Dong Lijuan explains that the holiday season boosted consumer demand. People were out shopping, celebrating, and enjoying the festivities, which naturally drove up prices. In fact, when you exclude food and energy costs, the core CPI still climbed by 0.6%.
But it’s not all about rising prices. Industrial production, on the other hand, hit a seasonal low. The Chinese New Year holiday often leads to factories slowing down or pausing operations as workers head home to celebrate. As a result, the Producer Price Index (PPI), which reflects the costs of goods at the factory gate, actually dropped by 2.3% year on year.
The combination of increased consumer spending and decreased industrial activity paints an interesting picture of China’s economy during this festive period. While shoppers are out in full force, factories take a break, leading to a unique economic balance.
