Display mode (Doesn't show in master page preview)

10 Feb 2025

International Economy

China’s inflation rose after a temporary boost from Lunar New Year spending, but deflation risks remain (Business Brief No.4125 Full Ed.)

คะแนนเฉลี่ย
  • China’s inflation hit a five-month high in January 2025 (Figure 1), driven by rising prices of fresh food products, including pork, fruits and vegetables, due to increased demand during the Lunar New Year festival (Figure 2). Additionally, travel spending during the Chinese New Year holiday contributed to services inflation, with tourism revenue increasing by 7 percent YoY. Meanwhile, non-food inflation remained low, reflecting the fact that consumers remain cautious about their spending.
  • The accelerating inflation in January 2025 was driven by temporary factors, while deflation risks persist. China’s Producer Price Index (PPI) declined for the 28th  consecutive month in January 2025 (Figure 3). Going forward, producer prices are expected to remain low due to the overcapacity issue, which is likely to worsen amid escalating trade tensions between the US and China throughout the year. Moreover, uncertainty surrounding the Chinese economy will continue to weigh on consumer spending.

View full article


International Economy