China’s national consumer price index (CPI) turned negative in February, falling 0.7% from a year earlier, marking the first such drop since January of the previous year. This decline was driven by lower prices in food, tobacco, and alcohol.

The CPI’s drop reversed the 0.5% year-on-year gain recorded in January, and it also fell short of economists’ expectations, which had forecasted a 0.5% contraction, according to a Reuters poll.

On a monthly basis, China’s CPI dropped 0.2% in February, compared to a 0.7% increase in January.

This data comes as investors continue to assess the effectiveness of Beijing’s stimulus measures aimed at boosting the country’s economic recovery. On Wednesday, China set its 2025 GDP growth target at “around 5%,” while outlining plans to support economic growth by stimulating domestic demand.

In addition, China lowered its annual consumer price inflation target to “around 2%” — the lowest in over two decades — down from the previous target of 3% or higher, as reported by the Asia Society Policy Institute. The revised inflation goal is seen as more of a ceiling than an actual target to achieve.

Economists note that reaching China’s 2025 growth target may be difficult, especially with weak domestic consumption and growing trade tensions with the United States under President Donald Trump’s administration.