China's national vegetable basket price index reached 125.78 in January, 3.26 points higher from the previous month. This rise was largely driven by seasonal increases in vegetable prices, according to the Ministry of Agriculture and Rural Affairs.
In January, the average wholesale price of 28 key monitored vegetables across the country was 5.32 yuan (about 0.73 U.S. dollars) per kilogram, a 5.3 percent rise from the previous month and a 2.7-percent increase year on year. Among these, five types of vegetables saw price declines month on month, while 23 experienced price hikes. Notably, cauliflower, green beans, bell peppers, lettuce, and eggplant saw price increases of over 10 percent.
"There was a seasonal rise in vegetable prices in January. For one thing, the volume of vegetables transported from the south to the north went up during the Spring Festival holiday, which translated into higher costs in temperature control and transportation. For another, the production cost of greenhouse-grown vegetables in the north is higher than that of open-field varieties. Additionally, consumer spending during the festival period has also contributed to the uptick in price," said Zhang Jing, a researcher at the Institute of Agricultural Information of the Chinese Academy of Agricultural Sciences.
Zhang added that the total growing areas for vegetables nationwide is slightly higher than in the previous year, and the production and supply foundation for winter and spring vegetables is relatively solid. The seasonal price increase in January was relatively mild compared to previous years.
"Since the Spring Festival, a cold wave has lingered across the country, with temperatures in most regions lower than the average readings for this period. This will affect the growth and transportation of vegetables. The prices of some vegetable may rise further in the short term and in some areas," Zhang said.
Vegetable prices go up in Jan due to seasonal factors
China will continuously build a robust domestic market to bolster its economy and counter external challenges in accordance with the requirements and arrangement from the annual Central Economic Work Conference, which put domestic demand at the forefront of eight key tasks for next year's economic work, according to experts.
The tone-setting conference was held in Beijing from Wednesday to Thursday in which the Chinese leadership decided priorities for the economic work in 2026.
Over the past four years, domestic demand has contributed an average of 86.4 percent to China's economic growth, according to the National Development and Reform Commission (NDRC), China's top economic planner.
"The top priority is to expand domestic demand as the key reason for this is that our demand is relatively weak. The first step here is figuring out how to increase consumption," said Chen Binkai, vice president of Central University of Finance and Economics.
Consumption has continued to play a leading role in the country's economic growth this year. In the first three quarters, final consumption expenditure contributed 53.5 percent to economic growth, an increase of 9 percentage points compared to the whole of last year.
The annual Central Economic Work Conference proposed that in 2026, a special campaign to boost consumption will be implemented in depth, the supply of high-quality goods and services will be expanded, policies on new and emerging industries will be optimized, unreasonable restrictions in the consumption field will be eliminated, and the potential of service consumption will be unleashed.
"Previously, much of the consumption we have encouraged is for manufactured goods. However, the growth rate of our service sector is not as ideal as that of the manufacturing sector. Therefore, increasing some investment to encourage consumption in the service sector may play a better role in stabilizing growth and expanding domestic demand," said Huang Qunhui, a researcher of the Institute of Economics under the Chinese Academy of Social Sciences.
Experts said that income is the primary factor determining consumption, and only by increasing residents' disposable income, can their consumption capacity be improved.
They also said that the conference, while emphasizing the promotion of consumption, also clearly pointed out the need to formulate and implement a plan to increase the income of urban and rural residents.
"The Third Plenary Session [of the 20th CPC Central Committee] mentioned the need to increase the proportion of residents' income, specifically the proportion of labor compensation within that income. The Fourth Plenary Session [of the 20th CPC Central Committee] further proposed implementing a specific income-increasing plan for urban and rural residents. Of course, consumption is not solely an income issue. We need to strengthen basic public services and improve our social security fund. If these issues are further improved and optimized, and residents have higher incomes, they will be more willing to spend more on consumption, especially on development-oriented consumption," said Huang.
Expanding domestic demand remains top priority for China's economic work in 2026: experts
