In February 2024, China's Consumer Price Index (CPI) fell by 0.7 per cent year-on-year, its first drop in 13 months. SMU Associate Professor of Finance Fu Fangjian explained that this decline is not a major concern due to typical post-holiday consumption slowdowns and comparisons to high prices in February 2023. Additionally, cheap energy purchases from Moscow since the Russia-Ukraine war and weakened domestic demand amid lower household incomes have kept China’s CPI low.
