Little inflation is a sign of weak economy, which China has been criticized for past few year.
That has changed.
China’s past 3-month core CPI (excl. food and energy) is the best in years, after February core CPI of 0.7% MoM.
The yoy number of 1.8% in Feb is also the highest in years – even higher than 1H of 2021.
Chinese policymakers kept their annual consumer inflation target steady at “around 2%” for 2026. Although China hasn’t seen 2% CPI for 3 years since Jan 2023, 2026 looks to be closer.
