Core Viewpoint - The press conference held by the State Council Information Office highlighted the effectiveness of monetary and financial policies in supporting the high-quality development of the real economy, with a focus on the optimization and upgrading of China's household consumption structure [1]. Group 1 - The People's Bank of China, represented by spokesperson and Vice Governor Zou Lan, emphasized the continuous improvement in the structure of household consumption [1].

Core Insights - Recent positive changes in China's price levels have been observed, with CPI rising by 0.8% year-on-year in December 2025, reaching the highest level since March 2023 [1] - The core CPI, excluding food and energy, increased by 1.2% year-on-year, maintaining a growth rate above 1% for four consecutive months [1] - The PPI's year-on-year decline has narrowed by 1.7 percentage points from its low in July, with a month-on-month increase for three consecutive months [1] Price Structure Analysis - Among the eight categories of CPI, food and transportation have seen significant declines, with pork prices dropping by 30% and transportation costs decreasing by 11.7% since the beginning of 2023 [1] - Conversely, education, culture, and entertainment prices have risen by 3.6%, with tourism alone increasing by 14.4%, indicating an ongoing optimization and upgrading of consumer spending structures in China [1] Monetary Policy Outlook - The People's Bank of China has maintained a supportive monetary policy stance, ensuring ample liquidity and a significant growth in financial totals that outpace nominal GDP growth [2] - Moving forward, the central bank will prioritize promoting stable economic growth and reasonable price recovery as key considerations in its monetary policy, continuing to implement moderately accommodative policies to create a favorable monetary environment for price recovery [2]