Beijing, Jan 10 (IANS) China’s inflation ticked up in the final month of 2025 — highest in 34 months — and the decline in producer prices further narrowed as government policies aimed at boosting domestic demand continued to make a positive impact on the economy.

With the New Year’s spending boost, China’s consumer price index (CPI), a main gauge of inflation, rose 0.8 per cent year on year in December, data from the National Bureau of Statistics (NBS) showed.

“The CPI increase in December expanded by 0.1 percentage points compared to the previous month, reaching the highest level since March 2023,” NBS statistician Dong Lijuan said, attributing the widened price increase primarily to the expansion in food price growth. In December, food prices gained 1.1 per cent year on year.

The core CPI, which excludes food and energy prices, was up 1.2 percent from a year ago last month, the data showed, reports Xinhua news agency.

In December, the CPI in urban regions rose 0.9 per cent, beating a milder 0.6 per cent increase in rural regions. Non-food prices also registered more moderate growth than food prices, rising 0.8 per cent year on year.

In 2025, the CPI remained flat compared to last year, according to NBS data. Among its main targets for development in 2025, the Chinese government aimed for a CPI increase of around 2 per cent as it sought to balance supply and demand through a combination of policies and reform measures, while maintaining the general price level within an appropriate range.

On a monthly basis, the CPI also rose 0.2 per cent in December, reversing a 0.1-per cent decrease in November. This shift in price changes has been primarily driven by rising prices of industrial consumer goods excluding energy, which grew by 0.6 per cent in the month.

“As the effects of policies to boost consumption continued to take effect, coupled with the New Year’s Day, residents’ demand for shopping and entertainment increased, leading to price increases in communication devices, maternal and infant products, durable recreational goods, and household appliances, with growth rates ranging between 1.4 percent and 3 percent on a month-on-month basis,” Dong said.

–IANS

na/