According to the statistics released by National Bureau of Statistics, in February, the Consumer Price Index (CPI) rose to 2.3%, an increase of 1.6% month on month, marking the biggest rise since July 2014.

In light of the continued downturn in economy, does the rise in prices mean the 'return of inflation'?

Is China heading towards stagflation?

ANBOUND’s research team is of the view that the probability of stagflation in China is rather small and the overall economy is still in the state of deflation.

However, in the meantime, we should strengthen the relevant economic policy to avoid the possibility of stagflation.