China Food Inflation

China's food prices fell 3.3% year-over-year in February 2025, swinging from a 0.4% increase in the previous month and marking the first decline this year. The latest result also represented the steepest drop in cost of food since January 2024, driven by seasonal factors following an earlier-than-usual Lunar New Year celebration, the country's biggest annual holiday. Fresh vegetable prices plunged (-12.6% vs 2.4% in January), alongside further declines in eggs (-2.7% vs 0.7%), cooking oils (-2.0% vs -2.5%), and milk (-1.4% vs -1.7%). Meanwhile, fresh fruit prices were down by 1.8%, shifting from a 0.6% increase in January.