Travel and spending during China’s Lunar New Year holiday hit new records this year, giving the government an encouraging boost as it seeks to ramp up the ailing economy.

China’s consumer inflation accelerated for the first time since August, caused by a burst of household spending around the Lunar New Year holiday even as deflationary pressures persist.

Among China’s traditional holidays and celebrations, none ranks higher in importance than the Lunar New Year (農曆新年). Also known as the Spring Festival (春節), or simply Chinese New Year, it marks the beginning of the year according to the traditional lunar calendar.

SHANGHAI: China’s consumer inflation accelerated for the first time since August, in what’s likely a blip caused by a burst of household spending around the Lunar New Year holiday even as deflationary pressures persist.

China's consumer inflation accelerated to its fastest in five months in January while producer price deflation persisted, reflecting mixed consumer spending and weak factory activity. Deflationary pressures are likely to persist in China this year,

China’s annual inflation rate surged to 0.5% in January 2025 from 0.1% in December, above market consensus of 0.4%. This marked the highest figure since August 2024, driven by seasonal effects from the Lunar New Year at the end of the month.

BEIJING: China’s consumer inflation accelerated for the first time since August, in what’s likely a blip caused by a burst of household spending around the Lunar New Year holiday even as deflationary pressures persist.