Full-year CPI target likely lower at 2%

Among provincial-level regions, 27 out of 31 set inflation goals at such levels

China is likely to lower its annual inflation target to around 2 percent this year — the lowest reading in two decades — when the country's top legislature convenes next month, signaling a significant fine-tuning in macroeconomic policy goals, economists and analysts said.

The reduction would indicate a shift of policy focus from preventing inflation from exceeding a certain threshold to guiding its recovery to a reasonable level, implying an increased weight on promoting reflation and correcting subdued demand via policymaking.

According to the 2025 government work reports of provincial-level regions on the Chinese mainland, the vast majority of these local governments — 27 out of 31 — set their annual consumer price index expectation growth targets at "around 2 percent".