BEIJING - China's core consumer inflation remained stable in January, official data showed on Wednesday, pointing to a gradual recovery in domestic demand, even as headline price growth eased due to base effects from last year's Chinese New Year and lower energy costs.

The consumer price index (CPI), a main gauge of inflation, edged up 0.2 percent year on year in January, while core CPI, which excludes food and energy prices, rose 0.8 percent, according to data released by the National Bureau of Statistics (NBS).  

The headline CPI growth moderated from the 0.8-percent gain in the previous month, largely because of base effects linked to the timing of the Chinese New Year and a sharper fall in energy prices, NBS statistician Dong Lijuan explained.

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Last year's Spring Festival fell in January, pushing up food and some service prices and leaving a higher comparison base. As a result, food prices fell 0.7 percent from a year earlier in January 2026, subtracting about 0.11 percentage points from CPI, Dong noted.

Energy prices dropped 5.0 percent, shaving roughly 0.34 percentage points off CPI, the data revealed.

Despite the softer headline reading, underlying inflation demonstrated signs of improvement. On a month-on-month basis, core CPI rose 0.3 percent, the fastest pace in nearly six months, indicating a continued, moderate recovery in consumer demand.

Price increases for industrial consumer goods, excluding energy, continued to widen. Prices of such goods rose 2.6 percent from a year earlier, with the pace of increase 0.1 percentage points faster than in the previous month.

"The data shows that consumer demand has continued to recover, and that the trend of moderate growth in core CPI remains unchanged," said Dong.

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Wednesday's data also revealed that China's producer price index (PPI) rose 0.4 percent month-on-month in January, marking the fourth consecutive monthly increase, while the year-on-year decline narrowed to 1.4 percent from a 1.9-percent drop in December.

The NBS attributed this improvement to steady progress in building a unified national market, rising demand in some sectors, and price transmission from international commodity markets.

The data comes at a time when the Chinese government is intensifying efforts to boost domestic demand.

Last month, China unveiled a comprehensive policy package, leveraging fiscal and financial synergy to boost consumption and energize private investment.

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The country's top economic planner also pledged to formulate a strategic implementation plan for expanding domestic demand for the 2026-2030 period.

The National Development and Reform Commission said the plan aims to adapt to consumption upgrades and technological shifts, fostering a virtuous cycle where "new demand steers new supply and new supply creates new demand" through robust innovation support.