Inflation in China picked up last month, with the consumer price index (CPI) rising 0.5%, up from 0.1% in November, driven by higher food prices and tourism-related services during the Chinese New Year holiday. The rise, which was the highest since August, exceeded analysts’ expectations. Fresh vegetables and pork saw significant price increases, while retail sales of household appliances and electronics surged over 10%. However, analysts caution that this inflation boost may be short-lived, as seasonal demand fades this month. China has struggled with sluggish consumption, deflation, and a property slump, which have weighed on growth. Policymakers have introduced measures such as interest rate cuts and expanded subsidies to stimulate the economy. Despite these efforts, deflation risks persist, as consumers tend to delay purchases when prices are falling, potentially slowing economic recovery.