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Story summary
- China did not experience deflation in 2025, as December prices rose 0.8% year on year, the highest since early 2023.
- Core inflation stabilized at 1.2%, while food prices—especially vegetables and fruits—contributed to the increase.
- Housing prices remain soft, reflecting property-sector adjustments rather than weak demand.
- Producer prices showed improvement, with a moderated pace of decline.
- Overall, China remains in a low-inflation environment, giving policymakers flexibility.
