Photo: CFP

 
China's consumer price index (CPI), the main gauge of inflation, rose by 0.7 percent in February year-on-year, confirming a clear signal trend toward rising domestic demand across China's economy which delivered imports growth in the first two months of 2024.

China's CPI rose by 0.7 percent in February year-on-year and rose 1 percent month-on-month, according to data from the National Bureau of Statistics (NBS) on Saturday. The upward trend of prices month-on-month in China since December 2023 has shown further signs of strengthening.

China's producer price index (PPI), which measures costs for goods at the factory gate, fell by 2.7 percent year-on-year in February, data from NBS showed Saturday.

The three-month continuous rise in consumption prices month-on-month confirms a signal of the recovery of domestic demand across the Chinese economy that was reflected in China's increase in imports in the first two months of 2024. The country's overall economic performance in the first quarter may exceed expectations, according to one expert.

China's dollar-denominated imports in January and February increased by 3.5 percent year-on-year, marking two consecutive months of growth, according to General Administration of Customs of China released data on Thursday.

The strong year-on-year and month-on-month price increases in February suggest that consumption in China has indeed returned to normal levels, even after excluding seasonal factors which include the traditional consumption surge during the Spring Festival holidays, Tian Yun, an economist based in Beijing, told the Global Times on Saturday.

In the face of a continuous price rebound in January and February, we have reason to have higher expectations for China's domestic consumption indicators in January and February as well, Tian added.

Global Times