China’s authorities have to make urgent efforts against rampant inflation. According to Reuters, citing China's National Bureau of Statistics, domestic consumer inflation has soared over the past five months and it may not have reached its peak yet!
The latest report shows that the consumer price index in China accelerated to its highest level in five months in January. The annual CPI rose by 0.5% compared to January 2024. Meanwhile, the core CPI, which excludes volatile food and energy prices, jumped to 0.6% in January on year.
Airfare prices surged by 9%, while inflation in the tourism sector increased to 7%. Besides, ticket prices for cinemas and other entertainment events skyrocketed by 11%.
According to official sources, the average inflation rate in China was 3.4% per decade before the COVID-19 pandemic. However, in recent years, the situation has worsened dramatically. The housing crisis is viewed as the main culprit, wiping out an estimated $18 trillion in household savings.
