China’s CPI growth accelerated in January to 0.5% YoY, up from 0.1% YoY in December and above expectations of an 0.4% YoY increase. The monthly rate was a strong 0.7% MoM, the fastest since February 2024.

• Both goods and services inflation picked up to 0.1% YoY and 1.0% YoY respectively. Services inflation was the strongest since February 2024 when there was a flare up due to travel prices.
• Food prices were up a strong 1.3% MoM with fresh vegetable prices up 5.9% MoM, fish prices up 2.7% MoM, and fresh fruit prices up 3.3% MoM.
• Fuel prices saw a strong increase as well with gas prices up 2.5% MoM.
• Services prices flared up as well with family services up 5.7% YoY and tourism up 11.6% YoY.