China Inflation Rate Slightly Below Estimates

China’s annual inflation rate edged up to 0.9% in September 2026 from 0.8% in August, slightly below market expectations of 1%. It marked the highest reading since June, with non-food inflation accelerating (1.5% vs 1.2% in August), driven by a sharper rise in transport costs (4.3% vs 2.5%) amid higher gasoline prices and stronger travel demand ahead of the Golden Week break. Upward price pressure also came from clothing (1.2% vs 1.3%), healthcare (2.7% vs 2.7%), and education (1.4% vs 1.4%). In contrast, housing costs stayed subdued (-0.3% vs -0.3%). On the food side, prices declined for the sixth straight month, pointing to the steepest pace in four months (-1.7% vs -1.4%), weighed down by a further drop in pork prices, as abundant pork supplies and weak consumption weighed on prices. Core inflation, excluding food and energy, rose 1.0% yoy, unchanged from August. On a monthly basis, consumer prices rose 0.2%, below forecasts of 0.3% and slowing from August’s six-month high of 0.4%.

China’s annual inflation climbed to 0.8% in August 2026 from July’s six-month low of 0.5%, in line with market estimates. Non-food prices rose at a steeper rate (1.2% vs 0.9% in July), led by a sharp increase in transport costs (2.5% vs 0.4%) amid higher fuel prices and stronger travel-related demand. Upward price pressure also came from clothing (1.3% vs 1.4%), healthcare (2.7% vs 2.9%), and education (1.4% vs 1.3%). In contrast, housing costs remained subdued (-0.3% vs -0.3%). On the food side, prices declined for the fifth straight month (-1.4% vs -1.5%), weighed by a further drop in pork prices amid abundant supply and weak consumption. Core inflation, excluding food and energy, rose 1.0% yoy, up from July's six-month low of 0.9% On a monthly basis, consumer prices increased 0.4%, topping forecasts of a 0.3% gain and reversing a 0.1% drop in July. It also marked the highest monthly reading since February.

China’s annual inflation eased to 0.5% in July 2026 from 1.0% in the prior month, falling short of market forecasts of 0.8%. It was the lowest print since January, as food prices continued to decline while non-food inflation slowed further. Food cost fell for the fourth straight month (-1.5% vs -1.6% in June), weighed by a further drop in pork prices amid abundant supply and weak consumption. Meanwhile, non-food prices rose at a softer rate (0.9% vs 1.5%), with transport costs up more modestly (0.4% vs 4.1%) after a government fuel-price cut and easing global energy costs as Middle East supply disruptions subsided. Education costs also eased (1.3% vs 1.4%) while housing cost fell further (-0.3% vs -0.3%). In contrast, clothing inflation was stable (at 1.4%), and healthcare prices accelerated (2.9% vs 2.3%). Core inflation, excluding food and energy, rose 0.9% yoy, after June's 1.0%. Monthly, consumer prices fell 0.1%, defying consensus for a 0.2% gain and following a 0.3% fall in June.