China’s annual inflation rate slowed to 0.2% in January 2026, down from 0.8% in December, its lowest level since October and below market expectations of 0.4%. Food prices fell for the first time in three months (-0.7% vs +1.1% in December), largely due to a further drop in pork prices.
Non-food inflation also decelerated notably (0.4% vs 0.8%), despite the continuation of consumer trade‑in programs. Price growth eased slightly in healthcare (1.7% vs 1.8%), while education costs were unchanged after a 0.9% increase in the prior month. Housing (-0.1% vs -0.2%) and transport (-3.4% vs -2.6%) prices fell further. In contrast, clothing prices picked up modestly (1.9% vs 1.7%).
On a monthly basis, the consumer price index (CPI) rose 0.2%, matching December’s pace but coming in below the consensus forecast of 0.3%.
