National Bureau of Statistics: The year-on-year increase in CPI in December 2025 continued to expand, while the year-on-year decline in PPI narrowed.

On January 9th, Dong Lijuan, Chief Statistician of the Urban Division of the National Bureau of Statistics, interpreted the CPI and PPI data for December 2025. In December, the policy measures to expand domestic demand and boost consumption continued to take effect. In addition, with New Year's approaching, residents' consumption demand increased. The Consumer Price Index (CPI) rose by 0.2% month-on-month and 0.8% year-on-year, while the core CPI, excluding food and energy prices, rose by 1.2% year-on-year. Influenced by factors such as the transmission effects of international commodity prices and the continued effectiveness of policies related to capacity governance in key industries, the Producer Price Index (PPI) for industrial producers rose by 0.2% month-on-month but fell by 1.9% year-on-year. The increase in the year-on-year CPI in December 2025 continued to expand, while the year-on-year decrease in PPI narrowed. 1. CPI rose month-on-month and the year-on-year increase continued to expand, with the core CPI increasing by 1.2%. The month-on-month increase in CPI changed from a 0.1% decrease the previous month to a 0.2% increase. This increase was mainly influenced by the rise in industrial consumer goods prices excluding energy. Excluding energy, industrial consumer goods prices rose by 0.6%, contributing to a 0.16 percentage point increase in the month-on-month CPI. The policy effects of boosting consumption continued to show, combined with the approaching New Year, leading to increased demand for shopping and entertainment by residents. Prices of communication tools, maternity and baby products, durable entertainment goods, and household appliances all increased by 1.4% to 3.0%. Due to the rise in international gold prices, domestic gold jewelry prices increased by 5.6%. Energy prices decreased by 0.5%, with gasoline prices dropping by 1.2% due to changes in international oil prices. Food prices rose by 0.3%. With increased demand before the holiday, prices of fresh fruits and shellfish increased by 2.6% and 2.5%, respectively. Good weather conditions led to an 0.8% increase in vegetable prices, which was lower than the seasonal average of 3.3 percentage points. With sufficient production capacity for live pigs, pork prices decreased by 1.7%. The CPI increased by 0.8% year-on-year, expanding by 0.1 percentage points compared to the previous month, reaching the highest level since March 2023. The expansion in the year-on-year increase was mainly driven by the increase in food prices. Food prices rose by 1.1%, expanding by 0.9 points compared to the previous month, contributing to a 0.17 percentage p...