China’s Inflation Recovers, but Manufacturing Sector Remains Sluggish
China’s economy in 2025 has shown signs of recovery from deflation, with the Consumer Price Index (CPI) in January rising by 0.5% compared to the previous year. This is the highest expansion in five months and exceeds analysts’ expectations by 0.4%. However, inflation on the producer side (PPI) remains negative, reflecting ongoing issues in the industrial sector, which is still dealing with an oversupply of goods.