In February, China experienced its first increase in consumer prices in six months, rising by 0.7% YoY, surpassing economists’ expectations and marking the highest growth in 11 months. This uptick was attributed to heightened spending during the Chinese New Year, particularly on food items like pork and fresh vegetables, as well as increased travel activity. However, factory-gate prices continued to decline, dropping by 2.7% YoY, reflecting ongoing weak demand and persisting deflationary pressures. China’s economic growth has been constrained by factors such as a property crisis, sluggish international trade, and high government debt, prompting policymakers to consider further measures to stimulate growth.