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flag China's inflation rose to 1.3% in February 2026, driven by holiday spending, while factory prices continued to fall.

flag China’s consumer inflation rose to 1.3% year-on-year in February 2026, the highest in over three years, driven by strong holiday spending during the extended Lunar New Year, with the monthly CPI increasing 1%. flag Core CPI, excluding food and energy, climbed to 1.8% from 0.8% in January. flag Meanwhile, factory-gate prices fell 0.9% year-on-year, the smallest drop since July 2024, reflecting a slight improvement in industrial deflation. flag The data signals a modest rebound in domestic demand, though ongoing challenges include a property downturn and weak industrial output.

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