China's consumer price index (CPI), a main gauge of inflation, rose 1.3 percent year on year last month, official data showed on Monday.
The core CPI, which excludes food and energy prices, increased 1.8 percent year on year, according to data released by the National Bureau of Statistics (NBS).
Urban areas saw a 1.4 percent rise in the CPI, while rural areas experienced a 0.9 percent increase. Food prices climbed 1.7 percent compared to a year earlier, and non-food prices were up 1.3 percent. Prices for consumer goods rose 1.1 percent, and service prices increased by 1.6 percent. On average, the CPI for January and February was 0.8 percent higher than the same period last year.
Airfares, vehicle rentals, and travel agency fees all posted double-digit year-on-year increases. Prices for pet services, vehicle repair and maintenance, domestic services, and food delivery also saw rapid growth. On a month-on-month basis, the CPI rose 1.0 percent in February, as pent-up demand during the longer-than-usual Spring Festival holiday led to a surge in spending. Urban prices rose 1.0 percent, while rural prices increased 0.7 percent. Food prices jumped 1.9 percent from January, and non-food prices rose 0.8 percent. Consumer goods prices were up 0.8 percent, and service prices climbed 1.1 percent. The combined effect of higher airfares, vehicle rentals, travel agency fees, and hotel accommodation contributed about 0.32 percentage points to the monthly CPI increase.
"During the Spring Festival, demand for food and dining was very strong. Because last year's holiday was in January and this year's was in February, food prices shifted from negative to positive year-on-year growth. There was also a surge in demand for high-quality domestic services such as deep cleaning and professional organizing before and after the holiday, which pushed up household service prices. The nine-day holiday boosted tourism demand, leading to higher prices for travel agencies and other tourism services compared to last year," said Liu Nancun, an economist at the Analysis and Forecasting Division of the Price Monitoring Center under the National Development and Reform Commission.
China's CPI up 1.3 pct in February
China's CPI up 1.3 pct in February
