China’s consumer price index (CPI) dipped 0.1% year-on-year in May 2025, unchanged from April, signaling persistent deflationary pressures. Food prices fell 0.4%, while non-food prices held steady. A notable divide emerged between urban areas, where prices were flat, and rural regions, which saw a 0.4% decline. Meanwhile, service prices rose 0.5%, offsetting a 0.5% drop in consumer goods, reflecting uneven demand recovery.
On a monthly basis, CPI slipped 0.2%, with both food and non-food prices declining 0.2%. Consumer goods prices fell further (-0.3%), while services stabilized. The January-May average CPI remained 0.1% below 2024 levels, underscoring lingering softness in household spending.
The data highlights China’s uneven consumption rebound, with services outperforming goods and rural areas lagging cities. Policymakers may face pressure to roll out targeted stimulus to bolster demand, particularly in weaker sectors and regions.
Related topics：
