CONVEX
Last updated
▍ STATISTICAL PROJECTION · YEAR-END 2025
Central Estimate
116.83
+1.6% vs current 115.03
68% Range (±1σ)
114.84 to 118.81
95% Range (±1.96σ)
112.94 to 120.71
Central estimate uses the unconditional 25-year historical average because current regime buckets had insufficient observations to produce a reliable blend.
METHOD: CENTRAL = SAMPLE-WEIGHTED MEAN OF PER-ANCHOR CURRENT-REGIME 1Y AVERAGES, SCALED TO 189-DAY HORIZON. BAND = ±σ√T USING 2.0% ANNUALIZED REALIZED VOL.
EXPECTED TO BE 116.83 BY 2025-12-31 (HIGHER FROM 115.03 ON 2025-04-01). NOT INVESTMENT ADVICE.
▍ MODEL · STATISTICAL FORECAST · 2026

China CPI Index Forecast 2026

Quantitative analysis from 287 observations of China CPI Index history, joined to four universal macro regime classifications. Numbers are computed, not narrated.

ByConvex Research Desk·Edited byBen Bleier·
CHNCPIALLMINMEI · LAST
115.03
AS OF 2025-04-01
Percentile · 25Y History
92.0th

Performance by Window[02]

WINDOWNANN RETANN VOLRET/VOLHIT %TOTAL
1Y13-0.07%1.17%-0.0625.0%-0.07%
3Y360.14%1.33%0.1137.1%0.41%
5Y610.66%1.55%0.4341.7%3.35%
10Y1201.47%1.75%0.8449.6%15.61%
All2872.08%1.99%1.0554.9%63.49%

Annualized total return = (1 + total)^(1/years) - 1. Ret/Vol is the annualized return divided by annualized volatility (Sharpe-equivalent without risk-free subtraction). Hit % = pct of single periods that were positive.

Where We Are Now[03]

Percentile Rank
92.0th
69.36median 96.37116.23
Current value 115.0297 on a 287-observation history going back to Jul 1, 2002.
Volatility Regime
very low
1.41%REALIZED 30D ANN
Sits at the 8.2th percentile vs full history. Median 1.87%.

Forward Returns by Macro Regime[04]

How China CPI Index has performed historically conditional on the prevailing macro regime. The current bucket is highlighted; +1Y averages drive the headline signal above.

VIX
Volatility regime: Low (<15), Normal (15-25), Elevated (25-40), Extreme (>40)
CURRENT: 16.89 Normal (15-25)
REGIME BUCKETN+30D+90D+1Y AVG+1Y MEDHIT %
Low (<15)650.12%0.65%2.32%1.85%93.8%
Normal (15-25)840.12%0.79%2.23%2.12%89.9%
Elevated (25-40)320.11%1.03%1.81%1.78%78.1%
Extreme (>40)3n/an/an/an/an/a
10Y-2Y Yield Curve
Yield curve regime: Inverted (<0bps), Flat (0-100bps), Steep (>100bps)
CURRENT: 0.51 Flat (0-100bps)
REGIME BUCKETN+30D+90D+1Y AVG+1Y MEDHIT %
Inverted (<0bps)270.07%0.33%2.14%0.29%75.0%
Flat (0-100bps)570.13%0.95%2.21%1.78%94.4%
Steep (>100bps)1000.12%0.79%2.18%2.06%90.0%
HY OAS Spread
Credit regime: Tight (<350bps), Normal (350-500bps), Stressed (>500bps)
CURRENT: 2.83 Tight (<350bps)
REGIME BUCKETN+30D+90D+1Y AVG+1Y MEDHIT %
Tight (<350bps)19-0.01%0.46%1.91%2.18%85.7%
Normal (350-500bps)440.13%0.53%1.45%1.55%88.4%
Stressed (>500bps)18-0.02%0.68%1.34%1.64%88.9%
Trade-Weighted Dollar
Dollar regime: bottom/middle/top tercile of trailing 5Y rolling distribution
CURRENT: 118.73 Weak (bottom tercile)
REGIME BUCKETN+30D+90D+1Y AVG+1Y MEDHIT %
Weak (bottom tercile)340.32%1.10%3.01%3.13%82.4%
Neutral (middle)340.06%0.87%2.69%2.32%97.1%
Strong (top tercile)760.08%0.59%1.47%1.66%87.1%

Forward returns are forward-looking from each historical observation in the bucket; +252d corresponds to one trading year. Buckets with fewer than 5 forward-return observations are reported as n/a. These are conditional historical averages, not forecasts.

Lead-Lag Relationships[05]

For each universally-recognised leading indicator, the lag at which the daily-return correlation peaks. Positive lag means the anchor leads China CPI Index; negative means it lags.

ANCHORROLEPEAK LAGPEAK CORRZERO-LAGRELATIONSHIP
HY OAS SpreadCredit risk leader+46d0.305-0.154leads target by 46d
NFCIFinancial conditions+2d0.2490.083coincident
Initial Jobless ClaimsLabor leader-3d0.236-0.179coincident
Baa-10Y SpreadCredit risk (slow)-50d0.205-0.096lags target by 50d
U-Mich Consumer SentimentSurvey leader+49d0.193-0.003leads target by 49d
CopperGlobal growth proxy-58d-0.1920.000lags target by 58d
VIXVolatility leader+52d0.181-0.088leads target by 52d
10Y-2Y Yield SpreadRecession leader+54d0.1660.066leads target by 54d
Trade-Weighted DollarFX driver-59d0.166-0.157lags target by 59d
10Y Treasury YieldDiscount-rate driver-43d-0.165-0.025lags target by 43d

Pearson correlation of daily returns over up to 25 years of overlapping history, searched across a ±60-day lag grid. Indicators classified as “weak” don't have meaningful predictive power at daily resolution; many of these (yield curve, NFCI, sentiment) lead at monthly/quarterly horizons instead.

Historical Analogs[06]

Periods where China CPI Index sat at a similar percentile rank to today, with what happened over the next 30 / 90 / 252 trading days. Analogs are clustered to avoid double-counting nearby dates.

DATEVALUE+30D+90D+1Y
Jan 1, 2024115.00401.07%0.10%0.48%
Jul 1, 2023114.78090.29%-0.10%0.49%
Apr 1, 2023114.8925-0.10%0.19%0.19%
Sep 1, 2021112.21540.70%1.29%2.78%
Jun 1, 2021111.76920.30%1.10%2.49%

Worst Historical Drawdown[07]

-3.45%PEAK-TO-TROUGH
Peak Feb 1, 2002 → trough Jul 1, 2002. Recovered to prior peak on Feb 1, 2003 (215 days).
All-time high: 116.2310 on Feb 1, 2024 · Current DD from ATH: -1.03%

Largest Single-Period Moves[09]

▲ Up
  • Feb 1, 20082.60%
  • Feb 1, 20051.80%
  • Feb 1, 20161.58%
  • Jan 1, 20121.50%
  • Jan 1, 20201.44%
▼ Down
  • Mar 1, 2002-1.30%
  • Mar 1, 2020-1.23%
  • Jun 1, 2003-1.20%
  • Mar 1, 2018-1.13%
  • Mar 1, 2005-0.90%

Calendar-Month Seasonality[10]

Average single-period return aggregated by the calendar month in which the period ended.

MONTHAVG RETURNHIT %N
January0.82%100.0%24
February0.79%75.0%24
March-0.53%8.3%24
April-0.08%33.3%24
May-0.19%17.4%23
June-0.29%8.7%23
July0.09%58.3%24
August0.44%91.7%24
September0.51%87.5%24
October0.15%58.3%24
November-0.01%37.5%24
December0.35%79.2%24

N = 287 OBS · GENERATED 2026-05-03 13:30Z

Forecast Approach

regime implied: The current macro regime classification (Goldilocks, Reflation, Stagflation, or Deflation) dictates the expected direction and magnitude of movement, calibrated against historical regime performance.

Key Drivers & Risks

  • Food and energy prices
  • Currency pass-through
  • Wage dynamics
  • Fiscal stance
  • Base effects

Historical Volatility

Moderate in DM, high in EM with currency instability

Frequently Asked Questions

What factors could push China CPI Index higher?

The primary drivers that tend to lift China CPI Index depend on the current macro regime. China consumer price index (OECD MEI, 2015=100). Convex tracks these drivers live across the International Inflation category and flags when multiple forces align in the same direction. See the "Key Drivers & Risks" section on this page for the current list, and check the regime dashboard for how the macro backdrop is currently tilted.

What factors could push China CPI Index lower?

The same transmission channels that drive China CPI Index higher operate in reverse when conditions flip. The risk drivers listed above map directly to scenarios that, if triggered, would pull this metric in the opposite direction. Convex aggregates these into a scenario-weighted probability distribution rather than a point forecast, so the magnitude depends on which scenarios activate.

Where does consensus see China CPI Index heading?

Rather than publish a point target that goes stale the day after release, Convex assembles consensus from the macro regime classification, active scenario probabilities, and historical base rates. Point forecasts from banks and strategists are worth reading for context, but they typically cluster around the consensus and miss the tail events that actually move markets. The scenario-weighted approach here captures that tail risk explicitly.

What is the historical range for China CPI Index?

Historical ranges for China CPI Index vary dramatically by regime. A level that is extreme in Goldilocks can be routine in Stagflation, and vice versa. The Historical Volatility section on this page describes the typical range and regime-specific behavior. For the full multi-decade history, visit the China CPI Index chart page, which includes selectable time ranges up to five years and downloadable data.

How often is the China CPI Index forecast updated?

This forecast page recalculates whenever the underlying data or regime classification changes, typically within hours of new data releases. The scenario probabilities refresh daily as the macro state is regenerated. Specific drivers listed on this page reflect the current state of the Convex regime engine, not static historical assumptions.

Is this forecast actionable for trading?

Convex forecasts are informational and educational. They describe probability distributions and regime-conditional paths rather than specific entry and exit levels. Traders and portfolio managers use them alongside other inputs including position sizing rules, risk management, and their own conviction calibration. They are not investment advice.

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Forecasts are model-based projections derived from current regime classification, scenario probabilities, and historical patterns. They are not investment advice. All investments involve risk.