China 2025 CPI and PPI Data: Flat Consumer Prices Signal Persistent Deflationary Pressure
China's 2025 CPI stayed flat at 0%, missing the 2% target, while PPI fell by 2.6%. Explore the latest economic data and what it means for global markets and deflationary risks.
Is China's growth engine stalling? In 2025, the world's second-largest economy saw its consumer prices stay completely flat, while factory-gate prices continued their relentless slide. It's a stark reminder that Beijing's battle against deflation is far from over.
Analyzing China 2025 CPI PPI and Deflation Risks
China’s consumer price index (CPI) stayed unchanged in 2025, missing the official 2% target and slowing from the 0.2% increase seen in 2024. According to data from the National Bureau of Statistics (NBS), this lack of growth underscores a significant chill in domestic demand.
Meanwhile, the producer price index (PPI)—a key gauge of factory-gate costs—dropped by 2.6% for the full year. This marks a widening from the 2.2% decline in 2024. The industrial sector remains embroiled in fierce price wars, marking the 39th consecutive month of PPI contraction.
Silver Linings in December Data
It's not all doom and gloom. In December, the CPI rose by 0.8%, beating market estimates. NBS chief statistician Dong Lijuan noted that food prices, which jumped 1.1% in December, were the primary driver. However, experts warn that relying on volatile food prices isn't a sustainable path to economic stability.
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