China's low inflation hides big price drops in food, big jumps in energy

China's official consumer prices rose by 1.2% in May 2026 compared to last year. This overall number hides significant price drops in food and housing, while transport energy and other services became much more expensive.

The official inflation rate looks low, but it masks a split economy. Families pay less for pork and vegetables, but much more for gas and other daily services. This means different households and businesses face very different economic pressures.