Inflation rate in China 2013-2029
In 2023, the average annual inflation rate in China ranged at around 0.2 percent compared to the previous year. Projections by the IMF expect the inflation rate to reach around 0.4 percent in 2024. The monthly inflation rate in China dropped to negative values in the second half of 2023 and remained comparatively low in 2024.
Calculation of inflation
The inflation rate is calculated based on the Consumer Price Index (CPI) for China. The CPI is computed using a product basket that contains a predefined range of products and services on which the average consumer spends money throughout the year. Included are expenses for groceries, clothes, rent, power, telecommunications, recreational activities, and raw materials (e.g. gas, oil), as well as federal fees and taxes. The product basked is adjusted every five years to reflect changes in consumer preference and has been updated in 2020 for the last time. The inflation rate is then calculated using changes in the CPI. As the inflation of a country is seen as a key economic indicator, it is frequently used for international comparison.
China's inflation in comparison
Among the main industrialized and emerging economies worldwide, China displayed comparatively low inflation in 2022 and 2023. In previous years, China's inflation ranged marginally above the inflation rates of established industrialized powerhouses such as the United States or the European Union. However, this changed in 2021, as inflation rates in developed countries rose quickly, while prices in China only increased moderately. According to IMF estimates for 2023, Venezuela was expected to be the country with the highest inflation rate, with a consumer price increase of about 360 percent compared to 2022. South Sudan was estimated to have the lowest price increase worldwide with prices actually decreasing by about 3.2 percent.
