China's consumer price index (CPI), a main gauge of inflation, edged up 0.2 percent year on year in January, official data showed on Wednesday.

Data from the National Bureau of Statistics (NBS) showed the consumer price index (CPI) rose 0.2 percent from the same month last year, although the rise was lower than the 0.8 percent increase seen in December.

Meanwhile, the producer price index (PPI) fell 1.4 percent year-on-year.

The NBS said CPI growth moderated from the 0.8-percent gain in the previous month, largely due to base effects linked to the timing of Chinese New Year and a sharper fall in energy prices.

Last year's Spring Festival fell in January, pushing up food and some service prices and leaving a higher comparison base.

As a result, food prices fell 0.7 percent from a year earlier in January 2026, subtracting about 0.11 percentage points from the CPI, NBS statistician Dong Lijuan explained.

Energy prices dropped five percent, shaving roughly 0.34 percentage points off the headline CPI, the data revealed.

Despite the softer headline reading, underlying inflation demonstrated signs of improvement in January.

The core CPI, which excludes food and energy prices, rose 0.8 percent year on year, indicating a continued, moderate recovery in consumer demand.

On a month-on-month basis, core CPI increased 0.3 percent, the fastest pace in nearly six months, the data showed. (Xinhua/Reuters)