Inflation Rate (CPI): China

Analysis# China Inflation Rate (CPI) China's inflation rate stands at 0.7% in 2026, reflecting historically subdued price growth. Since 1981, the inflation rate has declined 72 percentage points from its peak of 24.3% in 1994—a dramatic deceleration that underscores the country's transition to price stability. The all-time low of -1.4% in 1999 marks the only deflationary episode in the dataset, contrasting sharply with the hyperinflationary 1990s. The most striking shift occurred after 2017. From 2017 through 2025, inflation collapsed from 1.6% to near-zero, with 2023 and 2025 recording essentially flat prices at 0.2% and 0% respectively. This prolonged low-inflation environment suggests China faces persistent deflationary pressures rather than demand-driven price growth. The modest uptick to 0.7% in 2026 provides limited indication of sustained inflationary momentum, positioning China among the world's lowest-inflation economies.