China's consumer inflation accelerated to its fastest in five months in January while producer price deflation persisted, reflecting mixed consumer spending and weak factory activity. Deflationary pressures are likely to persist in China this year,

China’s consumer inflation accelerated in January as food and service prices climbed ahead of the Lunar New Year holiday, official data showed Sunday.

China’s annual inflation rate surged to 0.5% in January 2025 from 0.1% in December, above market consensus of 0.4%. This marked the highest figure since August 2024, driven by seasonal effects from the Lunar New Year at the end of the month.