Reaching the highest level in nearly three years! China's February CPI year-on-year increase expanded to 1.3%, while the year-on-year decline of PPI continued to narrow to 0.9%

In February, influenced by the Spring Festival, the Consumer Price Index (CPI) rose by 1.0% month-on-month and 1.3% year-on-year, while the core CPI, excluding food and energy prices, increased by 1.8% year-on-year. Affected by the rise in international commodity prices, rapid growth in demand in certain domestic industries, and the continued effectiveness of macro policies, the national Producer Price Index (PPI) rose by 0.4% month-on-month and fell by 0.9% year-on-year, with the decline narrowing for consecutive months.

On March 9, the National Bureau of Statistics released data showing:

• China's February CPI rose to 1.3% year-on-year, the highest in nearly three years, compared to a previous value of only 0.2%;
• China's February CPI expanded from 0.2% last month to 1.0% month-on-month, the highest in nearly two years;
• The core CPI, excluding food and energy prices, rose by 1.8% year-on-year.

• PPI fell by 0.9% year-on-year, compared to a previous decline of 1.4%, with the decline narrowing for three consecutive months;
• PPI rose by 0.4% month-on-month, the same increase as last month, marking five consecutive months of growth.

Dong Lijuan, chief statistician of the Urban Division of the National Bureau of Statistics, interpreted the CPI and PPI data for February 2026:

CPI Growth Rate Expands

Month-on-month, the national CPI growth rate expanded from 0.2% last month to 1.0%, the highest in nearly two years, mainly due to the concentrated release of consumer demand during the long Spring Festival holiday, leading to significant increases in service prices, which exceeded seasonal levels. Service prices rose by 1.1%, an increase of 0.9 percentage points compared to last month, contributing approximately 0.54 percentage points to the month-on-month CPI increase. Among services, prices for air tickets, vehicle rentals, travel agency fees, and hotel accommodations rose by 31.1%, 24.7%, 15.8%, and 7.3%, respectively, collectively contributing approximately 0.32 percentage points to the month-on-month CPI increase, accounting for over 30% of the total CPI increase; prices for pet services, vehicle repair and maintenance, and housekeeping services rose by 12.0%, 11.6%, and 3.1%, respectively, while prices for movie and performance tickets and dining out rose by 9.9% and 1.1%, respectively, collectively contributing approximately 0.18 percentage points to the month-on-month CPI increase. Industrial consumer goods prices rose by 0.4%, an increase of 0.1 percentage points compared to last month. Among them, influenced by the rise in international gold prices, domestic gold jewelry prices rose by 6.2%, and the impact of international geopolitical conflicts on energy prices became evident, with domestic gasoline prices rising by 3.1%, collectively contributing approximately 0.12 percentage points to the month-on-month CPI increase. Although food prices changed from flat last month to an increase of 1.9%, the growth rate remained below seasonal levels, contributing approximately 0.33 percentage points to the month-on-month CPI increase In the food sector, during the holiday period, the demand increased, leading to price rises of 6.9%, 4.0%, and 4.0% for aquatic products, fresh fruits, and pork, respectively. The price increases for lamb, beef, eggs, and poultry ranged between 1.6% and 2.2%, collectively contributing to a month-on-month increase of approximately 0.34 percentage points in the CPI; the supply of fresh vegetables was sufficient, with prices decreasing by 0.1%.

Year-on-year, the CPI increase expanded from 0.2% last month to 1.3% due to the overlapping of the Spring Festival and the recovery of consumer demand, marking the highest level in nearly three years. Among them, service prices rose by 1.6%, an increase of 1.5 percentage points from the previous month, contributing approximately 0.75 percentage points to the year-on-year CPI increase. In services, the prices of air tickets, vehicle rentals, travel agency fees, and hotel accommodations shifted from a decrease last month to increases of 29.1%, 19.8%, 12.5%, and 5.4%, respectively; prices for pet services, vehicle repair and maintenance, housekeeping services, and takeout food rose by 13.0%, 12.0%, 6.3%, and 5.6%, respectively; prices for movie and performance tickets decreased by 1.1%; housing rentals entered the off-season, with rental prices decreasing by 0.6%. The prices of industrial consumer goods rose by 1.1%, an increase of 0.2 percentage points from the previous month. Among them, the price of gold jewelry rose by 76.6%, with a slight decline in the growth rate; prices for household appliances, daily necessities, and clothing rose by 5.3%, 2.6%, and 2.0%, respectively; gasoline prices decreased by 9.8%; and car prices decreased by 1.2%. Food prices shifted from a decrease of 0.7% last month to an increase of 1.7%, contributing approximately 0.30 percentage points to the year-on-year CPI increase. Among food items, the price increases for fresh vegetables, beef, lamb, and fresh fruits ranged between 5.9% and 10.9%, with all increases expanding compared to last month, collectively contributing approximately 0.41 percentage points to the year-on-year CPI increase; pork and egg prices decreased by 8.6% and 3.0%, respectively, with both declines narrowing compared to last month, collectively contributing approximately 0.18 percentage points to the year-on-year CPI decrease.

PPI increased month-on-month, while the year-on-year decline continued to narrow.

Month-on-month, the national PPI rose by 0.4%, the same increase as last month, marking five consecutive months of increase. The main characteristics of this month's PPI month-on-month operation are: first, the rise in international non-ferrous metal and crude oil prices has driven price increases in related domestic industries. The prices in the non-ferrous metal mining and selection industry, as well as the non-ferrous metal smelting and rolling processing industry, increased by 7.1% and 4.6%, respectively, with silver smelting, gold smelting, aluminum smelting, and copper smelting prices rising by 16.9%, 8.4%, 4.2%, and 3.7%, respectively. The prices in the oil and gas extraction industry, refined petroleum product manufacturing, and organic chemical raw material manufacturing rose by 5.1%, 0.7%, and 1.3%, respectively. Influenced by cost-push factors, the prices in the electrical machinery and equipment manufacturing industry rose by 1.2%, with the price of wire and cable manufacturing increasing by 2.3%. Second, the growth in computing power has driven demand increases in certain industries, leading to price rises. The prices in the computer communication and other electronic equipment manufacturing industry increased by 0.6% month-on-month, with prices for electronic semiconductor materials, external storage devices and components, and integrated circuit packaging and testing series rising by 2.8%, 1.2%, and 1.1%, respectively

From a year-on-year perspective, the national PPI decreased by 0.9%, with the decline narrowing by 0.5 percentage points compared to last month, marking three consecutive months of narrowing declines. The integrated effects of domestic macro policies continue to manifest, with positive price changes in some industries. First, the construction of a modern industrial system is accelerating, with prices in related industries rising year-on-year. The "Artificial Intelligence +" sector is thriving, with prices for electronic components and electronic special materials manufacturing rising by 4.9%, prices for control micro-motors rising by 1.6%, and prices for service consumption robots manufacturing rising by 0.7%; the green transition is continuously advancing, with prices for biomass fuel processing rising by 3.2% and prices for environmental protection special equipment manufacturing rising by 0.6%; high-end equipment is experiencing strong growth, with prices for aircraft manufacturing rising by 7.7%, prices for shipbuilding and related device manufacturing rising by 0.5%, and prices for additive manufacturing equipment manufacturing rising by 0.3%. Second, the market competition order continues to optimize, with prices in some industries stabilizing and rebounding year-on-year. The comprehensive governance of capacity in key industries and the "involution" competition is showing continuous effectiveness, with prices for photovoltaic equipment and components manufacturing rising by 3.2%, an increase of 2.7 percentage points compared to last month; prices for lithium-ion battery manufacturing shifted from a decrease of 1.1% last month to an increase of 0.2%, marking the first increase after 33 consecutive months of year-on-year decline; the price declines in coal mining and washing, cement manufacturing, new energy vehicle manufacturing, and black metal smelting and rolling industries narrowed by 2.8, 1.5, 0.5, and 0.3 percentage points respectively compared to last month.

In February, the consumer price index for residents rose by 1.3% year-on-year and 1% month-on-month

In February 2026, the national consumer price index for residents rose by 1.3% year-on-year. Among them, urban areas rose by 1.4%, and rural areas rose by 0.9%; food prices rose by 1.7%, and non-food prices rose by 1.3%; consumer goods prices rose by 1.1%, and service prices rose by 1.6%. From January to February, the average national consumer price index rose by 0.8% compared to the same period last year.

In February, the national consumer price index rose by 1.0% month-on-month. Among them, urban areas rose by 1.0%, and rural areas rose by 0.7%; food prices rose by 1.9%, and non-food prices rose by 0.8%; consumer goods prices rose by 0.8%, and service prices rose by 1.1%.

1. Year-on-year price changes for various goods and services

In February, prices for food, tobacco, alcohol, and dining out rose by 1.4% year-on-year, contributing approximately 0.41 percentage points to the CPI (Consumer Price Index) increase. Among food items, fresh vegetable prices rose by 10.9%, contributing approximately 0.19 percentage points to the CPI increase; aquatic product prices rose by 6.1%, contributing approximately 0.11 percentage points to the CPI increase; fresh fruit prices rose by 5.9%, contributing approximately 0.12 percentage points to the CPI increase; egg prices fell by 2.9%, contributing approximately 0.02 percentage points to the CPI decrease; and meat prices fell by 2.7%, contributing approximately 0.11 percentage points to the CPI decrease, with pork prices falling by 8.6%, contributing approximately 0.17 percentage points to the CPI decrease The prices of the other seven categories increased year-on-year, with five rising and two falling. Among them, the prices of other goods and services, daily necessities, and education, culture, and entertainment rose by 15.4%, 2.8%, and 2.0%, respectively; clothing and healthcare prices both increased by 1.9%; transportation and communication, and housing prices decreased by 0.7% and 0.2%, respectively.

II. Price Changes of Various Goods and Services Month-on-Month

In February, the prices of food, tobacco, alcohol, and dining out rose by 1.4% month-on-month, contributing approximately 0.40 percentage points to the CPI increase. Among food items, the price of aquatic products rose by 6.9%, contributing approximately 0.13 percentage points to the CPI increase; fresh fruit prices rose by 4.0%, contributing approximately 0.08 percentage points; meat prices rose by 2.6%, contributing approximately 0.11 percentage points, with pork prices rising by 4.0%, contributing approximately 0.07 percentage points; egg prices rose by 1.3%, contributing approximately 0.01 percentage points.

The prices of the other seven categories showed five increases, one stable, and one decrease month-on-month. Among them, the prices of other goods and services, transportation and communication, and education, culture, and entertainment rose by 2.3%, 2.2%, and 1.6%, respectively; daily necessities and healthcare prices rose by 0.2% and 0.1%, respectively; housing prices remained stable; clothing prices decreased by 0.1%.

In February, the Year-on-Year Decline in Industrial Producer Prices Narrowed, While Month-on-Month Prices Continued to Rise

In February 2026, the national industrial producer prices decreased by 0.9% year-on-year, with the decline narrowing by 0.5 percentage points compared to the previous month; month-on-month, prices rose by 0.4%, the same increase as the previous month. The industrial producer purchase prices decreased by 0.7% year-on-year, with the decline narrowing by 0.7 percentage points compared to the previous month; month-on-month, prices rose by 0.7%, with the increase expanding by 0.2 percentage points compared to the previous month. On average from January to February, industrial producer prices decreased by 1.2% compared to the same period last year, and industrial producer purchase prices decreased by 1.1%.

I. Year-on-Year Changes in Industrial Producer Prices In February, the producer price index for industrial producers showed that the prices of production materials decreased by 0.7%, contributing to an overall decline of approximately 0.55 percentage points in the total level of producer prices. Among these, the prices in the mining industry fell by 5.3%, the prices of raw materials decreased by 1.9%, and the prices in the processing industry increased by 0.3%. The prices of living materials decreased by 1.6%, affecting the total level of producer prices by approximately 0.35 percentage points. Specifically, food prices fell by 1.8%, clothing prices decreased by 1.0%, general daily necessities dropped by 1.8%, and durable consumer goods prices declined by 1.6%.

In the purchase prices of industrial producers, fuel and power prices decreased by 8.4%, chemical raw material prices fell by 5.0%, construction materials and non-metallic prices dropped by 4.5%, black metal material prices decreased by 3.1%, agricultural and sideline product prices fell by 2.3%, and textile raw material prices decreased by 1.9%; however, non-ferrous metal materials and wire prices increased by 21.3%.

II. Month-on-Month Changes in Producer Prices

In February, the producer price index for industrial producers indicated that the prices of production materials increased by 0.5%, contributing to an overall increase of approximately 0.38 percentage points in the total level of producer prices. Among these, mining industry prices rose by 1.2%, raw material prices increased by 0.2%, and processing industry prices went up by 0.6%. The prices of living materials remained unchanged. Specifically, food prices were stable, clothing prices decreased by 0.4%, general daily necessities dropped by 0.2%, and durable consumer goods prices increased by 0.3%.

In the purchase prices of industrial producers, non-ferrous metal materials and wire prices rose by 4.8%, chemical raw material prices increased by 1.0%, textile raw material prices went up by 0.2%, and construction materials and non-metallic prices increased by 0.1%; fuel and power prices decreased by 1.2%, and black metal material prices fell by 0.2%; agricultural and sideline product prices remained unchanged.