The Asian giant is facing difficulties with its exports and weak domestic consumption since the Covid-19 pandemic, due in particular to a prolonged crisis in the real estate sector.
He consumer price indexa key indicator of inflation, rose 0.8% year-on-year in Decemberaccording to the National Statistics Office (ONE).
The figure coincided with the forecast of the economic agency Bloomberg and exceeded the 0.7% registered in November.
Consumer demand increased in the last month of 2025 due to the New Year celebrations, Dong Lijuan, a representative of the ONE, said in a statement.
“Policies aimed at expanding domestic demand and promoting consumption continued to deliver results,” Dong added.
Although Beijing has attempted to shift to a growth model based more on domestic consumption and less on exports and manufacturing, success has been limited.
The producer price index fell 1.9% year-on-year in December, according to the ONE.
The Bloomberg survey had predicted a 2% decline.
The PPI has been in deflation for more than three years, reflecting weak demand and global oversupply of Chinese manufactured goods.
