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Back to articles • 5/6/2026, 10:23:00 AM

China's CPI up 1% in March

China's Consumer Prices Rose 1% in March

In March, China's CPI rose 1% year on year and core CPI rose 1.1%. Industrial goods and gold jewelry helped push prices up, while service price growth slowed. Month-on-month, CPI fell 0.7% mainly because food and vegetable prices dropped after the Spring Festival. The PPI returned to growth at 0.5% year on year. The government aims for around 2% CPI growth in 2026.

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China's consumer price index (CPI) rose by 1 percent in March compared with the same month last year. The core CPI, which does not include food and energy, went up by 1.1 percent.

Prices for industrial goods were higher. Industrial goods rose 2.2 percent and added 0.67 percentage points to the overall CPI. Gold jewelry prices grew a lot (65.8 percent), and gasoline prices increased by 3.8 percent.

Prices for services grew more slowly. Travel, hotels, air tickets and car rentals rose by 0.9 to 3.3 percent. Other services like pet care, vehicle repairs, home help, and eating out went up 1.2 to 1.6 percent.

Compared with February, the CPI fell 0.7 percent in March. A government statistician, Dong Lijuan, said this was because prices often fall after the Spring Festival. Food prices dropped 2.7 percent from February and pushed the monthly CPI down by 0.48 percentage points. Fresh vegetables fell 10.1 percent and fruit fell 3.3 percent.

The producer price index (PPI), which shows factory prices, grew 0.5 percent year on year in March. This ended a long period of falling PPI. China plans a CPI growth target of about 2 percent for 2026.

Vocabulary

inflation 通货膨胀

A general increase in prices and fall in the purchasing value of money.

Example: When inflation rises, the same amount of money buys fewer goods.

Collocation: rate of inflation

consumer price index 消费者物价指数

An index that measures changes in the prices of goods and services bought by households.

Example: The consumer price index is one way to check changes in living costs.

Collocation: consumer price index (CPI)

core 核心（不包括食品和能源）

Referring to a price measure that excludes volatile items such as food and energy.

Example: Core inflation gives a clearer view of long-term price trends.

Collocation: core CPI

industrial 工业的

Related to goods made in factories or the manufacturing sector.

Example: Industrial goods include machinery and tools made in factories.

Collocation: industrial goods

gasoline 汽油

A fuel used in cars and other vehicles.

Example: Rising gasoline prices can make transport more expensive.

Collocation: gasoline prices

services 服务业

Work offered to people, such as hotels, travel, and repairs.

Example: Service prices include costs for hotels, repairs, and restaurants.

Collocation: service prices

month-on-month 环比（月比）

A comparison of a statistic with the previous month.

Example: The CPI fell month-on-month because food prices dropped after the holiday.

Collocation: month-on-month change

producer price index 生产者物价指数

An index that measures the average change in the selling prices received by domestic producers.

Example: If the producer price index rises, factory prices are increasing.

Collocation: producer price index (PPI)

Questions

1. By how much did China's CPI rise year on year in March?

A. 0.5 percent

B. 1 percent

C. 2.2 percent

D. 3.8 percent

Show Answer

Answer: B

The article states that the consumer price index rose 1 percent year on year in March.

2. Which item saw a 65.8 percent increase?

A. Gasoline

B. Fresh vegetables

C. Gold jewelry

D. Air tickets

Show Answer

Answer: C

Gold jewelry prices surged by 65.8 percent, according to the data.

3. Why did the CPI fall 0.7 percent compared with February?

A. Because gasoline prices fell sharply

B. Due to seasonal moderation after the Spring Festival

C. Because industrial goods prices dropped

D. Because the government changed the target

Show Answer

Answer: B

The statistician Dong Lijuan said the month-on-month fall was due to seasonal moderation after the Spring Festival.

4. What happened to the producer price index (PPI) in March?

A. It fell by 0.9 percent

B. It stayed the same

C. It rose by 0.5 percent

D. It fell for the first time in years

Show Answer

Answer: C

The PPI rose 0.5 percent year on year in March, ending the previous period of decline.

5. What CPI growth target has China set for 2026?

A. Around 1 percent

B. Around 2 percent

C. Around 3 percent

D. No target was set

Show Answer

Answer: B

The government work report set a CPI growth target of around 2 percent for 2026.

China's CPI Rises 1% in March; PPI Returns to Growth

In March, China's CPI rose 1% year on year while core CPI rose 1.1%. Industrial goods helped push inflation up, led by a large increase in gold jewelry and higher gasoline prices. Service price growth eased. Month-on-month, CPI fell 0.7% mainly because food and vegetable prices dropped after the Spring Festival. The PPI returned to growth at 0.5%, ending a 41-month decline, partly due to imported inflation and better supply-demand conditions. China aims for about 2% CPI growth in 2026.

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China's consumer price index (CPI), a key measure of inflation, rose 1.0 percent year on year in March. The core CPI, which excludes food and energy, increased by 1.1 percent.

Industrial goods prices climbed 2.2 percent year on year and contributed 0.67 percentage points to the CPI increase. A notable driver was a 65.8-percent surge in gold jewelry prices. Gasoline prices also returned to growth, rising 3.8 percent.

Service-sector price growth moderated. Prices for travel agencies, hotels, air tickets and vehicle rentals eased to increases of 0.9 to 3.3 percent year on year. Meanwhile, pet services, vehicle repair and maintenance, domestic services and dining out rose by 1.2 to 1.6 percent.

On a month-on-month basis, CPI fell 0.7 percent in March. NBS statistician Dong Lijuan said this reflected seasonal moderation after the Spring Festival. Food prices fell 2.7 percent from February and reduced the monthly CPI by 0.48 percentage points. Fresh vegetables and fruit prices dropped 10.1 percent and 3.3 percent, respectively, as warmer weather increased supply and post-holiday demand eased.

The producer price index (PPI) returned to year-on-year growth in March, rising 0.5 percent and ending a 41-month decline. The NBS said this turnaround was driven by imported inflationary pressures and improved supply-demand dynamics in some industries.

China has set a CPI growth target of around 2 percent for 2026, according to the government work report.

Vocabulary

consumer 消费者

A person who buys goods and services for personal use.

Example: Rising prices affect the purchasing power of consumers.

Collocation: consumer demand

core CPI 核心消费者物价指数

A measure of inflation that excludes volatile items like food and energy.

Example: Analysts often watch core CPI to understand underlying inflation.

Collocation: core CPI reading

contribute 贡献

To help cause or be part of a result.

Example: Industrial goods contributed 0.67 percentage points to the CPI rise.

Collocation: contribute to

surge 激增

A sudden and large increase.

Example: There was a surge in gold jewelry prices in March.

Collocation: surge in

moderate 缓和

To become less extreme or intense.

Example: Service-sector price growth moderated compared with earlier months.

Collocation: moderate growth

seasonal 季节性的

Related to changes that happen at certain times of the year.

Example: The drop in prices was partly due to seasonal factors after the holiday.

Collocation: seasonal moderation

producer price index 生产者物价指数

An index measuring changes in prices received by producers at the factory gate.

Example: The PPI returned to positive growth in March.

Collocation: producer price index (PPI)

dynamics 动态

The forces or processes that cause changes in a situation.

Example: Improved supply-demand dynamics helped push the PPI upward.

Collocation: supply-demand dynamics

Questions

1. Which of the following best describes the change in core CPI in March?

A. It fell by 1.1 percent

B. It rose by 1.1 percent

C. It rose by 65.8 percent

D. It did not change

Show Answer

Answer: B

Core CPI, which excludes food and energy, increased by 1.1 percent year on year in March.

2. How much did industrial goods prices add to the CPI increase?

A. 0.48 percentage points

B. 0.67 percentage points

C. 1.1 percentage points

D. 2.2 percentage points

Show Answer

Answer: B

Industrial goods climbed 2.2 percent and contributed 0.67 percentage points to the CPI rise.

3. What mainly caused the month-on-month fall in CPI in March?

A. A large drop in gasoline prices

B. A decline in service prices and food prices after the holiday

C. An increase in industrial goods prices

D. A change in the CPI calculation

Show Answer

Answer: B

Dong Lijuan said seasonal moderation after the Spring Festival led to food price falls and a decline in service prices, causing the month-on-month CPI fall.

4. What was the PPI result in March compared with February?

A. It continued to fall and dropped further

B. It returned to year-on-year growth, up 0.5 percent

C. It rose by 41 percent

D. It stayed down by 0.9 percent

Show Answer

Answer: B

The PPI rose 0.5 percent year on year in March, reversing a 0.9-percent drop in February and ending a 41-month decline.

5. Which factor did the NBS cite as contributing to the PPI turnaround?

A. Lower imports and weaker demand

B. Imported inflationary pressures and improved supply-demand dynamics

C. A large fall in food prices

D. A change in the CPI target

Show Answer

Answer: B

The NBS said the PPI turnaround was mainly due to imported inflationary pressures and improved supply-demand dynamics in some industries.

March Sees 1% CPI Rise as PPI Ends 41-Month Decline

March's CPI rose 1.0% year on year, with core CPI up 1.1%. Industrial goods, notably a 65.8% rise in gold jewelry and higher gasoline prices, contributed to the increase, while service inflation moderated. Month-on-month, CPI fell 0.7% due mainly to a 2.7% drop in food prices and large falls in fresh vegetables and fruit after the Spring Festival. The PPI returned to growth at 0.5%, ending a 41-month decline, driven by imported inflationary pressures and improved supply–demand dynamics. China aims for roughly 2% CPI growth in 2026.

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China's consumer price index (CPI), a principal gauge of inflationary pressure, increased by 1.0 percent year on year in March. The core CPI, which strips out volatile food and energy components, rose 1.1 percent.

A sectoral breakdown shows industrial goods prices advanced 2.2 percent year on year, accounting for a 0.67 percentage-point contribution to overall CPI. This was underpinned by an extraordinary 65.8-percent leap in gold jewelry prices, while gasoline prices returned to positive territory with a 3.8-percent gain.

Service-sector inflation moderated. Prices for travel agency services, hotel accommodation, air tickets and vehicle rentals slowed to year-on-year gains of between 0.9 and 3.3 percent. Other services — including pet care, vehicle repair and maintenance, domestic services and dining out — recorded more modest rises of 1.2 to 1.6 percent.

On a month-on-month basis, the CPI declined 0.7 percent in March. NBS statistician Dong Lijuan attributed this to seasonal moderation following the Spring Festival. Food prices were a primary drag, sliding 2.7 percent from February and subtracting 0.48 percentage points from the monthly CPI. Fresh vegetables and fruit fell 10.1 percent and 3.3 percent respectively, reflecting increased supply from warmer weather and a post-holiday dip in demand.

The producer price index (PPI), which captures factory-gate prices, returned to year-on-year growth in March, rising 0.5 percent and bringing to an end a 41-month streak of decline. The NBS pointed to imported inflationary pressures and improved supply–demand dynamics in certain domestic industries as the main drivers of the turnaround.

According to this year's government work report, China has set a CPI growth target of around 2 percent for 2026.

Vocabulary

gauge 衡量标准

A measure or indicator used to assess a condition or level.

Example: The CPI is a common gauge of inflation in an economy.

Collocation: gauge of inflation

underpin 支撑，成为基础

To support or form the basis of something.

Example: The surge in gold jewelry prices underpinned the rise in industrial goods prices.

Collocation: underpin growth

moderate 缓和，减缓

To make or become less extreme, intense, or violent.

Example: Service-sector inflation moderated compared with previous months.

Collocation: moderate inflation

seasonal moderation 季节性回落

A reduction in activity or prices that commonly occurs at certain times of year.

Example: Analysts attributed the month-on-month fall to seasonal moderation after the holiday period.

Collocation: seasonal moderation after

subtract 减去

To take away a number or amount from another.

Example: Food prices subtracted 0.48 percentage points from the monthly CPI figure.

Collocation: subtract from

factory-gate prices 出厂价格

Prices charged by producers at the point of leaving the factory, before retail mark-ups.

Example: The PPI measures changes in factory-gate prices for goods.

Collocation: factory-gate prices

turnaround 转机，扭转

A complete change from a bad situation to a good one or vice versa.

Example: The PPI's return to growth marked a turnaround after 41 months of decline.

Collocation: marked a turnaround

dynamics 动力，动态

The forces or processes that produce change or cause development in a system.

Example: Improved supply–demand dynamics helped support PPI growth in some industries.

Collocation: supply–demand dynamics

Questions

1. Which statement best captures the role of industrial goods in March's CPI movement?

A. Industrial goods fell and reduced CPI by 0.67 percentage points.

B. Industrial goods were unchanged and had no impact on CPI.

C. Industrial goods rose 2.2% and contributed 0.67 percentage points to the CPI increase.

D. Industrial goods prices drove the whole CPI rise, adding more than 2 percentage points.

Show Answer

Answer: C

Industrial goods prices climbed 2.2% and contributed 0.67 percentage points to the CPI rise, as stated in the article.

2. What reason did the NBS give for the month-on-month CPI decline?

A. A sudden drop in gasoline prices worldwide

B. Seasonal moderation after the Spring Festival, with lower food and service prices

C. A new government policy reducing prices

D. A large fall in industrial production

Show Answer

Answer: B

NBS statistician Dong Lijuan attributed the 0.7% month-on-month decline to seasonal moderation after the Spring Festival, especially falling food and service prices.

3. Which of the following accurately describes the PPI development in March?

A. The PPI fell further, extending a 41-month decline.

B. The PPI rose 0.5% year on year, ending a 41-month streak of decline.

C. The PPI rose by 65.8% due to gold prices.

D. The PPI was unchanged from February.

Show Answer

Answer: B

The PPI returned to year-on-year growth in March, rising 0.5% and ending a 41-month streak of decline.

4. What factors did the NBS cite as driving the PPI turnaround?

A. Lower domestic demand and falling import costs

B. Imported inflationary pressures and improved supply–demand dynamics in some industries

C. Government subsidies to manufacturers

D. A drop in consumer spending

Show Answer

Answer: B

The NBS attributed the PPI turnaround mainly to imported inflationary pressures and improved supply–demand dynamics in some domestic industries.

5. Which of the following is true about food prices in March?

A. Food prices rose 2.7% month on month and pushed CPI up.

B. Food prices were unchanged from February.

C. Food prices slid 2.7% month on month, subtracting 0.48 percentage points from the monthly CPI.

D. Fresh vegetables and fruit both rose over 10%.

Show Answer

Answer: C

Food prices slid 2.7% from February and knocked 0.48 percentage points off the monthly CPI. Fresh vegetables fell 10.1% and fruit fell 3.3%.