China’s Inflation Rises After Lunar New Year Shopping Surge

China’s inflation rose in January 2025, driven by increased consumer spending during the Lunar New Year. The Consumer Price Index (CPI) saw its first year-on-year increase in six months, rising by 0.3%. However, producer prices continued to decline, reflecting weak demand and economic challenges. The government is focusing on boosting consumer confidence and economic recovery amid ongoing deflationary pressures. While holiday spending provided a temporary boost, concerns remain about long-term growth and domestic demand in the world’s second-largest economy.