Monthly inflation rate in China March 2024

In March 2024, the monthly inflation rate in China ranged at 0.1 percent compared to the same month in the previous year. Inflation peaked at 2.8 percent in September 2022, but has eased recently. The annual average inflation rate in China ranged at 0.2 percent in 2023.

China’s inflation in comparison

The term inflation means the devaluation of money caused by a permanent increase of the price level for products such as consumer or investment goods. The inflation rate is most commonly measured by the Consumer Price Index. The Consumer Price Index shows the price development for private expenses based on a basket of products representing the consumption of an average consumer household. Compared to other major economies in the world, China has a moderate and stable level of inflation. The inflation in China is on average lower than in other BRIC countries, although China enjoys higher economic growth rates. Inflation rates of developed regions in the world had for a long time been lower than in China, but that picture changed fundamentally during the coronavirus pandemic with most developed countries experiencing quickly rising consumer prices.

Regional inflation rates in China

In China, there is a regional difference in inflation rates. As of November 2023, Heilongjiang province experienced the highest CPI growth, while Xinjiang reported the lowest. In recent years, inflation rates in rural areas have often been slightly higher than in the cities. According to the National Bureau of Statistics of China, inflation was mainly fueled by a surge in recreation and education prices in recent months. The price gain in other sectors was comparatively slight. Transport prices have decreased recently, but had grown significantly in 2021 and 2022.