ISTANBUL

China's stagnation in consumer prices and decline in producer prices continued in the first month of the year.

The consumer price index rose by 0.2% on a yearly basis, while the producer price index fell by 1.4%, the National Bureau of Statistics announced on Wednesday.

The deflationary trend continued to be felt in the country with the stagnation in consumer prices and the ongoing decline in producer prices.

The increase in consumer prices slowed down compared to the 0.8% rise last month, while the decrease in producer prices was milder compared to the 1.9% drop last month.

While consumer prices increased by 0.2% on a yearly basis in January, core inflation, which excludes food and energy prices, was at 0.8%.

In this period, food prices decreased by 0.7% and energy prices fell by 5%.

Consumer prices, considered the main indicator of inflation, have been hovering below 1% in China since March 2023.

Consumer prices increased by only 0.2% in 2023 and 2024, and remained flat in 2025.

The Chinese government lowered its annual inflation target, which it normally set at 3%, to 2% this year due to the ongoing deflationary trend.