Consumer prices fell in China in February and remain flat in a sluggish economy

Beijing – Consumers prices dropped in February for the first time in 13 months, as there was a constant weak demand by the initial time Moon New Year’s Holiday.

The National Statistics Bureau said on Sunday that the Consumer Price Index fell 0.7% in February compared to a year ago. On a monthly basis, prices were down 0.2% since January.

When many other countries wrestle with inflation, China’s policy makers FaceAnd the probability they can develop into a definition spiral that pulls the economy. The government emphasized the need to increase domestic demand and consumer costs Annual report Last week, its Mon Pacharik Legislative Assembly, the National People’s Congress, but continued to unveil any dramatic new steps to accelerate the economy.

The Moon New Year, the time when traveling, dining and entertainment rises, it came to the end of January instead of February, as it is based on the cycle of the moon. Holiday costs helped the customer’s price index increase 0.5% in January, but then fell compared to the elevated level of 2024 last month.

The index was up 0.1% last month, making the holiday influence 0.1%, the Government Statistics Bureau statistics Dong Lijuan said in a written analysis.

It’s still much less than the ideal. The annual report of the government last week includes inflation targets for this year, but it is likely to be much less than that goal. The Consumer Price Index was flat in 2024, which is rising 0.2%.

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In addition to the early lunar New Year, the other two factors contributed to the falling prices in February, Dong said: Better weather increased farm production, reduced fresh vegetable prices and automakers also tried to increase sales as the price of new cars.

The Statistics Bureau said the manufacturer price index, which measures the wholesale price of goods, fell 2.2% in February, the Statistics Bureau said. Manufacturer prices are reducing consumers more sharply, which puts pressure on companies to reduce labor and other costs.