Inflation drops slightly in February, influenced by CNY prices

Information from the Statistics and Census Service (DSEC) indicated that the Composite Consumer Price Index (CPI) for February 2025 decreased by 0.16% year-over-year.

Like other statistical indicators related to February, DSEC noted that the decrease is due to the high comparison base resulting from increased prices of some goods and services amid the Chinese New Year, which fell in February last year.

DSEC also noted that due to the same reasons related to the Chinese New Year holidays being split between January and February this year, the Composite CPI for February this year fell by 0.19% month-over-month compared to January.

More relevantly, for the 12 months ending February 2025, the average Composite CPI grew by 0.57% from the previous period (March 2023 – February 2024).

In comparison with February last year, the price indices of Recreation, Sport, and Culture (-5.03%), Transport (-4%), Information and Communication (-2.83%), and Clothing and Footwear (-1.98%) saw a marked year-over-year decline in February 2025 among the various sections of goods and services.

On the other hand, the price indices of Miscellaneous Goods and Services — such as personal care products, insurance, jewelry, clocks, and watches (+2.05%) — Alcoholic Beverages and Tobacco (+2.03%), and Education (+1.17%) increased.

Additionally, the price index of Food and Non-Alcoholic Beverages (+0.69%) recorded year-over-year growth due to higher charges for eating out and takeout, as well as higher prices for bread and biscuits.
Concurrently, rising rentals for dwellings drove up the Housing and Fuels price index (+0.31%).

Higher drop month-over-month

Compared month-over-month with January 2025, the price index of Recreation, Sport, and Culture (-3.6%) decreased owing to lower package tour charges and hotel room rates after the Chinese New Year holiday.

Additionally, the price indices of Transport (-1.64%) and Clothing and Footwear (-0.93%) registered a month-over-month decline.

Meanwhile, the price indices of Alcoholic Beverages and Tobacco (+1.1%) and Education (+0.46%) recorded growth.

Regarding the sections of goods and services closely linked to livelihoods, the price index of Food and Non-Alcoholic Beverages (+0.15%) increased due to rising charges for eating out and takeout.

For the 12 months ending February 2025, the average Composite CPI grew by 0.57% from the previous period. Among the various sections of goods and services, the price indices of Education (+2.84%), Miscellaneous Goods and Services (+2.54%), and Health (+1.97%) saw notable increases, while the index of Transport (-3.19%) fell.

DSEC also noted that for the first two months of 2025, the average Composite CPI climbed by 0.2% year-over-year, with the average CPI-A and CPI-B rising by 0.16% and 0.21%, respectively.