China’s consumer prices increased for the first time in six months in February, despite a decline in factory-gate prices.

The increase was due to spending during the Lunar New Year, which increased essential items like pork and fresh vegetables.

However, factory-gate prices continued to decline, with a 0.8% decline in January 2023.

Experts caution that a full-blown recovery is not yet likely, as the domestic market is still not strong.

The CPI increased by 1.0% month over month in February, surpassing both experts’ estimates and January’s 0.3% increase.

The producer price index (PPI) decreased 2.7% from a year earlier, China’s economic growth has been hindered by a deep-rooted debt problem among real estate developers, weak international trade flows, a decline in domestic investment, and excessive local government debt.

Premier Li Qiang unveiled an ambitious 5% economic growth objective, but analysts predict it will be more difficult to achieve as the post-COVID recovery sputters.