China's Consumer Inflation Disappoints in January 2026
China's Consumer Inflation Disappoints in January
China's consumer inflation climbed just 0.2% year-on-year in January 2026, far below the anticipated 0.4% and down from December's 0.8%, as reported by the National Bureau of Statistics. This underwhelming rise signals ongoing economic pressures despite stimulus efforts. Food prices tumbled 0.7%, dragged by sharp declines in pork, eggs, and cooking oils, due to last year's Lunar New Year base effect. Energy costs plunged 5.0%, further curbing headline figures.[1][2][4]
Producer Prices Show Glimmers of Recovery
While consumer prices lagged, producer price deflation eased to -1.4% year-on-year from -1.9% prior, with a 0.4% monthly gain marking four straight increases. Core CPI, stripping out food and energy, held at 0.8% annually and surged 0.3% monthly—the quickest in nearly six months—hinting at steadying demand for industrial goods, up 2.6%.[2][3]
Implications for Policy and Outlook
NBS statistician Dong Lijuan attributed the dip to base effects and energy drops, yet underlying trends suggest moderate recovery. Economists forecast 0.9% full-year CPI, with February poised for rebound as Lunar effects fade. Persistent producer weakness underscores factory overcapacity risks, potentially prompting bolder monetary easing from the PBOC to hit the 2% target.[3][1]
About the Organizations Mentioned
National Bureau of Statistics
## National Bureau of Statistics: Overview The National Bureau of Statistics (NBS) is the apex statistical body in Nigeria, responsible for providing comprehensive, timely, and credible socio-economic data to guide development planning and evidence-based policymaking[1][7]. It coordinates the statistical operations of Nigeria’s National Statistical System, overseeing data production across federal ministries, departments, agencies, state statistical agencies, and local government councils[1]. The NBS’s mandate extends to all economic, social, and demographic aspects of life in Nigeria, ensuring that accurate statistical information is available for both public and private sector decision-making[7]. ## History and Formation The NBS was established through the merger of the Federal Office of Statistics (FOS) and the National Data Bank (NDB) as part of the Federal Government’s Statistical Master Plan[1]. This merger was designed to create a unified, national statistical agency capable of meeting the data needs of all three tiers of government in Nigeria. The legal foundation for the bureau is the Statistics Act of 2007, which formalizes its structure and operations[1]. ## Key Achievements The NBS has made significant strides in modernizing Nigeria’s statistical infrastructure. It provides a wide range of customized reports, an online data analysis tool, and a comprehensive data portal, making statistical information accessible to businesses, researchers, and policymakers[5][7]. The bureau has also established state offices in all 36 states and the Federal Capital Territory, ensuring nationwide coverage and localized data collection[1]. Its annual and multi-annual work programs reflect a commitment to continuous improvement and responsiveness to national needs[4]. ## Current Status and Notable Aspects Today, the NBS is recognized for its role in producing reliable and relevant statistics that underpin economic planning and investment decisions[7]. Under the leadership of Prince Adeyemi Adeniran, the bureau has reaffirmed its commitment to becoming one of the foremost modern, knowledge-based statistical offices in Africa and the world
People's Bank of China
The **People's Bank of China (PBOC)** serves as the central bank of the People's Republic of China, formulating and executing monetary policy, issuing the renminbi (RMB), and regulating financial markets to ensure stability.[1][2][3] Founded in **1948** in Shijiazhuang amid China's civil war, the PBOC initially operated as a commercial bank but evolved significantly post-1949, managing foreign exchange and trade settlements. A pivotal reform came in 1993 via the State Council's Financial System Resolution, transforming it into a modern central bank focused on currency management, macroeconomic stability, and financial oversight—separating commercial banking functions to specialized institutions.[2][1] Key achievements include stabilizing the RMB exchange rate at adaptive equilibrium levels, amassing vast state foreign exchange and gold reserves, and mitigating systemic risks through tools like open market operations (e.g., 7-day reverse repos) and macroprudential policies. The PBOC has driven RMB internationalization, boosting its global reserve status amid Xi Jinping's vision, while supporting tech and private sector growth via relending facilities and rate adjustments.[3][5][6] Currently, as the 25th-ranked ministerial department under the State Council, the PBOC lacks full independence, implementing Chinese Communist Party (CCP) directives via the Central Financial Commission. Governor and CCP Secretary **Pan Gongsheng** (since 2023) leads alongside deputy governors and a Monetary Policy Committee of officials and economists. In early 2026, it signaled flexible monetary tools to meet the 5-year plan, cut relending rates, lowered property down payments to 30%, and doubled yuan liquidity for Hong Kong lenders—prioritizing demand, debt risks, and RMB use.[2][3] Notably, the PBOC oversees payments, anti-money laundering, credit reporting, and international finance from its Beijing headquarters, blending tradition wit
