China Producer Prices Rise the Most in 4 Years

China’s producer prices increased 4.1% year-on-year in June 2026, accelerating from a 3.9% rise in the previous month and matching market forecasts. It was the fourth consecutive monthly increase and the steepest pace since July 2022, driven by firmer commodity prices and rising production costs as geopolitical tensions in the Middle East continued to underpin global energy and raw material markets. Production material costs quickened (5.5% vs 5.2% in May), led by further increases in mining (16.5% vs 15.8%), raw materials (8.6% vs 9.2%), and processing (3.0% vs 2.3%). Meanwhile, a decline in consumer goods prices persisted (-0.9% vs -0.8%), as costs continued to fall for food prices (-2.1% vs -1.8%), clothing (-1.0% vs -1.0%), and daily-use goods (-1.0% vs -1.0%), while durable goods prices were subdued (0.1% vs flat reading). For the first six months of the year, PPI fell 0.3%, reversing a 1.5% growth in May, due to seasonal factors and easing crude oil prices.

China’s producer prices increased 3.9% year-on-year in May 2026, accelerating from a 2.8% rise in the previous month and matching market forecasts. It was the third consecutive monthly increase and the fastest pace since July 2022, driven by soaring global commodity and energy prices amid supply disruptions stemming from the war in Iran. Beijing’s efforts to cut excess industrial capacity and curb intense price competition also helped lift factory-gate prices. Production material costs accelerated (5.2% vs 3.8% in April), driven by stronger increases in mining (15.8% vs 10.8%), raw materials (9.2% vs 7.1%), and processing (2.3% vs 1.5%). A decline in consumer goods prices eased (-0.8% vs -1.0%), despite continued decreases in food prices (-1.8% vs -1.9%), clothing (-1.0% vs -1.1%), and daily-use goods (-1.0% vs -1.1%), while durable goods prices were unchanged (vs 0.3%). For the first five months of the year, PPI climbed 1.0%. Monthly, PPI rose 0.5%, easing from a 1.7% gain in April.

China’s producer prices rose 2.8% yoy in April 2026, picking up from a 0.5% gain in the prior month and beating market forecasts of 1.5%. It marked a second consecutive monthly gain and the fastest pace since July 2022, fueled by surging global commodity and energy prices amid supply disruptions from the war in Iran. Beijing’s efforts to cut excess industrial capacity and curb intense price competition also helped lift factory-gate prices. Production material costs quickened (3.8% vs 1.0% in March), led by steeper rises in mining (10.8% vs 2.0%), raw materials (7.1% vs 1.1%), and processing (1.5% vs 0.9%). A fall in consumer goods prices eased (-1.0% vs -1.3%), despite continued drops in food (-1.9% vs -1.7%), clothing (-1.1% vs -1.1%), daily-use goods (-1.1% vs -1.4%), and durable goods (-0.3% vs -1.0%). For the first four months of the year, producer prices rose 0.2%, reversing a 0.6% drop in January–March. Monthly, producer prices gained 1.7%, the fastest since October 2021.