The majority of provinces across China have set their new year target for the consumer price index at 2 percent. This comes as provincial governments issue their government work reports for the year. Chen Tong takes a closer look.
Twenty-seven provincial governments across China have adjusted their 2025 CPI target to two percent.
In previous years, this growth target was usually set at three percent.
According to the National Bureau of Statistics, China's CPI recorded a minor increase of 0.2 percent in 2024.
ZHU QIGUI Associate Director, China Academy of Financial Research, SJTU "Our supply of consumer goods is sufficient, but we have to admit that our demand is not enough. So, setting the CPI at 2% is more reasonable and practical. With our existing policies and new policies being introduced, I think our economy will grow better and consumer prices will climb up moderately."
In economics, when demand is larger than supply, consumer prices will grow.
And a CPI growth of some three percent is usually considered to be a healthy trend.
CHEN TONG Shanghai "There are still many economic uncertainties in the internal and external market. So setting the CPI target to a lower level is more reasonable for local governments. But it doesn't mean an unhealthy growth target – local governments nationwide are trying hard to boost consumer demand."
ZHU QIGUI Associate Director, China Academy of Financial Research, SJTU "I always think boosting consumer demand needs a basket of policies. We have to plan as a whole. As long as we issue more policies, we can enhance demand and let residents have a greater sense of fulfillment."
Shanghai, for example, says it will continue to give subsidies for trading-in old home appliances and cars in the new year. New year coupons are also issued in major shopping malls across the city.
Stimulating people's shopping desire has been a clear target for provincial governments in the new year. Chen Tong, CGTN, Shanghai.