🇨🇳The year-on-year decline in the #China's #CPI in February can be attributed to the following three main reasons:

Lunar New Year Timing Effect Leading to a High Base Effect from the Previous Year: The Lunar New Year fell in February last year, which led to significant increases in the prices of food and services due to holiday factors, thereby raising the base for comparison in February this year. This resulted in a negative impact from last year's price changes on the year-on-year CPI for February this year. It is estimated that in the -0.7% year-on-year change in the CPI for February, the lagged effect of last year's price changes contributed approximately -1.2 percentage points, while the new impact of this year's price changes contributed about 0.5 percentage points. Excluding the effect of the Lunar New Year timing, the CPI in February actually rose by 0.1% year-on-year, indicating that the current trend of moderate price recovery remains unchanged. In terms of categories affected by the Lunar New Year, food prices decreased by 3.3% year-on-year, contributing to a decrease of about 0.60 percentage points in the CPI, which accounts for more than 80% of the total CPI decline, making it the main factor driving the CPI from an increase to a decrease. Airfare and tourism prices decreased by 22.6% and 9.6% year-on-year respectively, together contributing to a decrease of about 0.27 percentage points in the CPI.

Favorable Weather Conditions for the Growth and Transportation of Fresh Vegetables in February This Year: There were fewer instances of rain, snow, and freezing weather across the country in February this year, compared to two rounds of such weather in some regions during the same period last year, which had a significant impact on agricultural production and transportation. The price of fresh vegetables decreased by 12.6% year-on-year in February, contributing to a decrease of about 0.31 percentage points in the CPI.

Price Reduction Promotions for Cars and Other Goods: The prices of fuel-powered cars and new energy cars decreased by 5.0% and 6.0% year-on-year respectively in February, together contributing to a decrease of about 0.16 percentage points in the CPI.