China Records Highest Core Inflation in 19 Months: Robust Domestic Demand Fuels Economic Stability

In September 2025, China witnessed notable improvements in its inflation indicators, as core inflation (excluding food and energy) soared to its highest level in 19 months. This marks a strong sign of recovering domestic demand and ongoing economic stabilization.

According to the National Bureau of Statistics, the core consumer price index rose by 1% year-on-year, marking the fifth consecutive month of acceleration and the largest increase since February. The index also recorded a 0.1% month-on-month uptick in September, following a period of stability in August.

Additionally, the annual decline in the core index narrowed to just 0.3%, down from 0.4% in August, highlighting weaker deflationary pressures. This sustained positive performance underscores the rebound of economic activity and growing consumer confidence in China's markets.