Monthly inflation rate in China January 2021

In January 2021, the monthly inflation rate in China ranged at -0.3 percent, down from 0.2 percent in the previous month. Inflation reached 5.4 percent in January 2020 but has decreased steadily thereafter. The annual average inflation rate in China ranged at 2.5 percent in 2020.

China’s inflation in comparison

The term inflation means the devaluation of money caused by a permanent increase of the price level for products such as consumer or investment goods. The inflation rate is most commonly measured by the Consumer Price Index. The Consumer Price Index shows the price development for private expenses based on a basket of products representing the consumption of an average consumer household. Compared to other major economies in the world, China has a moderate and stable level of inflation. The inflation in China is on average lower than in other BRIC countries, although China enjoys higher economic growth rates. Inflation rates of developed regions in the world are still generally lower than in China.

Regional inflation rates in China

In China, there is a regional difference in inflation rates. As of January 2021, Tibet experienced the highest CPI growth, while Hainan province reported the lowest. In recent years, inflation rates in rural areas have often been slightly higher than in the cities. According to the National Bureau of Statistics of China, inflation was mainly fueled by a surge in food sector prices in recent months. The price gain in other non-food sectors was relatively slight. Transportation and communication prices even decreased compared with the year before.