Inflation primed for 'moderate' increase in 2024

The consumer price index, a main gauge of inflation, is expected to witness a moderate increase this year, as China looks to bolster domestic demand and shift from the post-COVID consumption recovery to one of sustained expansion, officials and analysts said.

The underwhelming performance of the CPI over the past few months suggests certain challenges in maintaining price stability, and analysts said China's central bank may adopt a proactive approach, leveraging its monetary policy tools to further stimulate the economy and boost market confidence.

Data released by the National Bureau of Statistics on Wednesday showed that consumer prices in 2023 maintained a mild upward trajectory, with the CPI rising by a modest 0.2 percent over the course of the year.