China's CPI dips 0.7% year-on-year in February

(ECNS) -- China's consumer price index dipped 0.7% year-on-year in February, while the producer price index fell 2.2%, according to data released by the National Bureau of Statistics （NBS) on Sunday.

The year-on-year shift from increase to decline in February's CPI can be attributed to three main factors, NBS chief statistician Dong Lijuan explained.

First, the timing difference of the Spring Festival in 2024 and 2025 resulted in a higher comparison base from the same period last year. In February of the previous year, the Spring Festival holiday consumption led to significant increases in food and service prices, raising the comparison base for February 2025, which caused the year-on-year CPI in February 2025 to be negatively affected by price fluctuations. 

Second, the weather in February this year was favorable for the growth and transportation of fresh vegetables， while the same period last year saw two rounds of rain, snow, and freezing weather in some areas, which significantly impacted agricultural production and transportation. As a result, fresh vegetable prices dropped 12.6% year-on-year in February, contributing to a 0.31 percentage point decrease in the year-on-year CPI.

Third, price reductions and promotions for goods such as cars contributed to the decline. In February, the prices of fuel-powered and new energy vehicles fell by 5.0% and 6.0%, respectively, collectively leading to a 0.16 percentage point decrease in the year-on-year CPI.