China's consumer prices swing up on seasonal Lunar New Year gains
By Ryan Woo and Liangping Gao
BEIJING (Reuters) -China's consumer prices rose for the first time in six months due to spending linked to the Lunar New Year, offering some reprieve for the world's second-biggest economy grappling with weak consumer sentiment, while factory-gate prices fell again.
The consumer price index (CPI) climbed 0.7% year-on-year in February, data from the National Bureau of Statistics (NBS) showed on Saturday, beating the 0.3% gain forecast by economists in a Reuters poll.
The year-on-year growth in consumer prices was also the highest in 11 months, buoyed by gains in some key foodstuffs such as pork and fresh vegetables, as well as travel amid a seasonal rush around Lunar New Year in February, according to the NBS data.
The bounce into positive territory contrasted with the 0.8% fall in January, the steepest drop in over 14 years, due to a higher statistical base in January 2023 as the Lunar New Year arrived earlier that month and boosted spending.
While other recent indicators, such as much stronger-than-expected trade figures this week, have suggested improvement in some parts of the economy, analysts warn that a full-throttled recovery is not yet in the cards.
«It is too early to conclude that deflation in China is over,» said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.
«Domestic demand is still quite weak. Property sales of new apartments have not stabilised yet.»
In February this year, CPI rose 1.0% month-on-month, outpacing the 0.3% uptick in January and the 0.7% growth forecast by economists.
But the producer price index (PPI) fell 2.7% from a year earlier in February versus a 2.5% drop the previous month. That was faster than a 2.5% decline forecast in the
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