China has abandoned its zero-tolerance corona policy, which reflects in the spiking prices.
The Chinese consumer price index was 2.1 percent higher in January than the same period last year, according to China’s National Bureau of Statistics (NBS).
NBS writes in a press release, that higher travel activity and less restricted corona policies contributed to the higher prices.
“In January, consumer prices rose due to factors such as Chinese New Year and eased pandemic restrictions and policies,” NBS wrote according to the Chinese newspaper South China Morning Post.
Chinese New Year took place shortly after China softened its zero-tolerance corona policy and is typically an event that encourage many Chinese to travel.
According to Reuters, aviation prices rose by 20.3 percent compared to January last year.
According to Reuters, experts expect the cost of living to continue rising in the coming months. Meanwhile inflation moves closer to the three percent target set by the Chinese government last year.
Food prices have increased slightly, but the growth in prices is still down compared to the end of 2022. In January 2023, food prices were 2.6 percent higher than compared to last year.
This is a significant decrease from the 4.8 percent by which food prices rose from December 2021 to December 2022. In September 2022, food was nine percent more expensive than the same period the year before.
However, prices for sought-after food items in China are still high. Pork cost 11.8 percent more in January than the same month last year. Fruit was 13.1 percent more expensive than the year before.