China Producer Prices Fall the Least in 1-1/2 Years

2026-02-11 01:33 By Chusnul Chotimah 1 min. read

China’s producer prices dropped 1.4% year-on-year in January 2026, slowing from a 1.9% fall in December and extending the contraction to a 40th consecutive month.

The latest reading was slightly below market expectations of a 1.5% fall, marking the mildest decline since July 2024, reflecting Beijing’s continued efforts to rein in excessive price competition.

Production material prices fell much more slowly (-1.3% vs -2.1% in December 2025), with decreases softening in raw materials (-2.0% vs -2.6%) and processing (-0.4% vs -1.6%), while mining dropped at a faster pace (-8.1% vs -4.7%).

Consumer goods prices declined at a faster pace (-1.7% vs -1.3%), driven by steeper falls in clothing (-0.7% vs -0.1%) and food prices (-1.9% vs -1.5%), while durable goods remained weak (-1.8% vs -3.5%).

Also, the costs of daily-use goods fell faster (-1.8% vs 1.4%).

Monthly, the PPI rose 0.4% in January, accelerating from a 0.2% rise in December, marking the fastest increase since September 2023.



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China Producer Prices Fall the Least in 1-1/2 Years
China’s producer prices dropped 1.4% year-on-year in January 2026, slowing from a 1.9% fall in December and extending the contraction to a 40th consecutive month. The latest reading was slightly below market expectations of a 1.5% fall, marking the mildest decline since July 2024, reflecting Beijing’s continued efforts to rein in excessive price competition. Production material prices fell much more slowly (-1.3% vs -2.1% in December 2025), with decreases softening in raw materials (-2.0% vs -2.6%) and processing (-0.4% vs -1.6%), while mining dropped at a faster pace (-8.1% vs -4.7%). Consumer goods prices declined at a faster pace (-1.7% vs -1.3%), driven by steeper falls in clothing (-0.7% vs -0.1%) and food prices (-1.9% vs -1.5%), while durable goods remained weak (-1.8% vs -3.5%). Also, the costs of daily-use goods fell faster (-1.8% vs 1.4%). Monthly, the PPI rose 0.4% in January, accelerating from a 0.2% rise in December, marking the fastest increase since September 2023.
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China Producer Deflation Hits 16-Month Low
China’s producer prices fell 1.9% year-on-year in December 2025, easing from a 2.2% decline in November and extending the contraction to a 39th consecutive month. The latest reading was slightly above market expectations of a 2.0% drop, marking the mildest decline since August 2024, reflecting Beijing’s continued efforts to rein in excessive price competition. Consumer goods prices dropped a bit slower (-1.3% vs -1.5% in November), driven by milder falls in durable goods (-3.5% vs -3.6%) and clothing (-0.1% vs -0.3%), while food prices remained weak (-1.5% vs -1.5%). In contrast, costs of daily-use goods rose slightly faster (1.4% vs 1.1%). At the same time, production material prices fell more slowly (-2.1% vs -2.4%), with decreases softening in mining (-4.7% vs -6.1%), raw materials (-2.6% vs -2.9%), and processing (-1.6% vs -1.9%). For the full year of 2025, producer prices shrank 2.6%. Monthly, the PPI rose 0.2% in December, after edging up 0.1% in the previous two months.
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China Producer Prices Drop More than Expected
China’s producer prices fell 2.2% year-on-year in November 2025, slightly accelerating from a 2.1% decline in October and marking the 38th consecutive month of contraction. The result came in slightly worse than market expectations of a 2.0% decline, reflecting ongoing price competition and persistently weak domestic demand. Consumer goods prices declined at a faster pace in November (-1.5% vs -1.4% in October), driven by steeper falls in durable goods (-3.6% vs -3.2%), while food (-1.5% vs -1.6%) and clothing (-0.3% vs -0.3%) continued to drop modestly. In contrast, costs of daily-use goods rose slightly faster (1.1% vs 1.0%). Meanwhile, production material prices remained weak (-2.4% vs -2.4%), with persistent declines in mining (-6.1% vs -7.8%), raw materials (-2.9% vs -2.5%), and processing (-1.9% vs -1.9%). During the first eleven months of the year, producer prices shrank 2.7%. Monthly, the PPI inched up 0.1%, the same pace as in October.
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