China’s consumer prices increased in February, helped by higher spending during the Lunar New Year holiday. Data showed the country’s Consumer Price Index (CPI) rose 1.3% from a year earlier, marking the fastest rise in more than three years. Prices for services such as travel, dining and tourism increased as people spent more during the festive period.
However, price pressure at factories remained weak. China’s Producer Price Index (PPI) fell 0.9% year-on-year, though the decline was smaller than in the previous month. Economists say the data indicates some improvement in consumer demand, but the economy still faces challenges from weak industrial activity and slow domestic recovery.