China's producer deflation persists as consumer inflation cools in January

China's consumer prices rose 0.2% year-on-year in January while the producer price index fell 1.4%, the National Bureau of Statistics reported.

China reported slower consumer inflation and continuing producer price deflation for January. The National Bureau of Statistics said the consumer price index rose 0.2% year‑on‑year while the producer price index fell 1.4%. Officials noted the PPI downturn eased for a second month but remains a long-running trend. Policymakers have signalled plans for more proactive macroeconomic measures in 2026. Key figures: - CPI rose 0.2% year-on-year in January, down from a 0.8% rise in December. - PPI fell 1.4% year-on-year, with the downturn easing for a second month but extending a years-long deflationary trend. - Authorities have announced more proactive macroeconomic policies and will unveil the next five-year development plan and a GDP growth target at the annual parliamentary session in early March. Summary: The data highlight a gap between weak factory-gate prices and softer consumer inflation that officials say is weighing on industrial profits. The government has pledged steps to better align supply and demand and to support incomes, and monetary measures have included sector-specific rate cuts and targeted cheap loans. The next major policy milestone is the annual parliamentary session in early March, when the five-year plan and the year's growth target will be presented.