by XIN Yuan
China's consumer price index rose 0.8% year on year in December 2025, the fastest pace since March 2023, as higher food prices lifted headline inflation, data from the National Bureau of Statistics (NBS) showed on Friday.
The increase was 0.1 percentage point higher than in November. DONG Lijuan, chief statistician at the NBS's urban department, said policy measures to support demand and consumption continued to take effect, while spending picked up ahead of the New Year holiday.
Food prices rose 1.1% from a year earlier, accelerating by 0.9 percentage point from November and adding about 0.17 percentage point to CPI growth, the NBS said. Pork prices fell 14.6%, though the decline narrowed, while fresh vegetable prices surged 18.2%.
Non-food prices increased 0.8%, unchanged from the previous month. Service prices rose 0.6%, easing slightly. Core CPI, excluding food and energy, climbed 1.2%, remaining above 1% for a fourth consecutive month.
WANG Qing, chief macro analyst at Golden Credit Rating, told Jiemian News that CPI growth may ease in January, citing a higher base a year earlier and the Lunar New Year falling in February. He added that inflation is likely to remain subdued through 2026, with full-year CPI expected to average around 0.4%, leaving room for further pro-growth measures, including monetary easing, without triggering sharp price pressures.
Chief economist WEN Bin at China Minsheng Bank said prices could recover gradually later this year as policy support feeds through and services consumption strengthens, though gains are expected to be modest.
With inflation contained, market participants said Beijing retains flexibility to adjust policy support as it seeks to stabilize growth while keeping price pressures in check.
