China’s consumer price index (CPI) rose 1.3% YoY in February — its fastest pace in over three years — driven by record Chinese New Year holiday spending. Monthly prices jumped 1.0%, double expectations. Core CPI climbed 1.8% — the highest since March 2019. The producer price index (PPI) fell 0.9% YoY, the slowest factory-gate deflation in over a year. The data follows Beijing’s announcement of a GDP growth target of 4.5-5% for 2026. Analysts suggest the government’s stimulus approach will remain measured as exports and manufacturing continue to power growth.

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