China's consumer price index (CPI), a key gauge of inflation, recorded a year-on-year increase of 0.8% in December 2025, according to data released by the National Bureau of Statistics (NBS) on Friday, January 9, 2026. This uptick represents the fastest annual growth rate for consumer prices since March 2023. The monthly rise was 0.2% in December, reversing a 0.1% decline in November. The acceleration in December's inflation was largely driven by a significant increase in food prices, particularly fresh vegetables and fruits, which rose by 18.2% and 4.4% respectively, year-on-year. NBS statistician Dong Lijuan noted that policies aimed at boosting domestic demand and consumption, coupled with increased consumer spending ahead of the New Year's Day holiday, contributed to the rise in prices. Core inflation, which excludes volatile food and energy prices, climbed 1.2% year-on-year in December, holding above 1% for four consecutive months. Despite this monthly acceleration, the overall consumer price index for the full year 2025 remained flat or unchanged compared to 2024. This annual stagnation highlights persistent underlying demand weakness and missed Beijing's official target of around 2% CPI growth for 2025. Meanwhile, China's producer price index (PPI), measuring factory-gate prices, continued its deflationary trend for the 39th consecutive month in December, falling 1.9% year-on-year, though the decline narrowed from 2.2% in November. The ongoing deflationary pressures in producer prices and the flat annual CPI for 2025 suggest that while some consumer demand is recovering, broader economic challenges remain, necessitating further policy support to stimulate sustained growth and overcome deflationary risks.