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China’s Inflation Hits 2.5-Year High as Food Prices Rise 🛒📈

China’s Inflation Hits 2.5-Year High as Food Prices Rise 🛒📈

China’s consumer prices rose at their fastest annual pace since March 2023 in December 2025, with inflation hitting 0.8% year-on-year, according to fresh data released Friday. The uptick signals shifting economic tides as policymakers work to revive domestic demand. 🚀

What’s driving the numbers? Food prices jumped 1.1% last month compared to 2024, contributing significantly to the CPI increase. Month-on-month, prices edged up 0.2%, while the producer price index (PPI) for 2025 fell 2.6% annually—a narrower decline than previous months. 📉→📊

NBS chief statistician Dong Lijuan highlighted “positive price changes in some sectors” as national market reforms progress. Meanwhile, economist Wen Bin predicts a stronger 2026 recovery, citing “policies boosting domestic demand” and industrial upgrades. 💡

Why it matters: With factory gate prices (PPI) dropping 1.9% year-on-year in December—a softer fall than earlier in 2025—analysts see cautious optimism. As China’s $18 trillion economy navigates global headwinds, young professionals and investors are watching for signs of sustainable growth. 🌏💼

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