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In 2025, consumer price inflation in China was comparatively low for a broad range of products and services. Falling prices for transportation and communication further pushed down overall inflation. The average annual consumer price inflation rate in China ranged at about *** percent in 2025. 

Sectoral price developments in China

China is a country with a comparatively low and stable inflation rate. This is obvious in comparison to other BRICS countries and is related to China’s low domestic producer prices and the country’s position as a global manufacturing base. However, due to its close connections to the world market, sectoral price changes in China are very much connected to global developments. During 2025, consumer prices were mainly driven by clothing and miscellaneous items and services. At the same time, transportation and communication prices dropped considerably. 

Regional inflation rates

Over the last decade, the economic development in China has spread from the more advanced coastal regions to the countryside. As a result, prices in rural areas often increased relatively faster than in the cities, although from a significantly lower level. This trend was disrupted during the COVID-19 pandemic, with regional inflation rates often rising faster in more developed regions.