China’s producer prices rose 5.7% year on year in October, the fastest pace since June 2022, as fuel and energy costs climbed. Consumer inflation, meanwhile, eased to 0.7%, with weak household demand limiting manufacturers’ ability to pass on higher costs, according to economists cited by Reuters.
By Adam Ujazdowski. Polish original published on 9 November 2026.
The producer price increase accelerated from 5% in September and exceeded the 5.3% forecast by economists polled by Reuters. The figures, released by China’s National Bureau of Statistics (NBS) on 9 November, also showed consumer inflation below the expected 0.8%.
Coal, oil and gas lead producer price rises
Prices in coal mining and washing rose 36.6% year on year, while oil and gas extraction prices increased 35%. Petroleum, coal and other fuel processing prices climbed 29.9%, and producers of chemical raw materials and chemical products raised prices by 16.4%.
The NBS attributed mounting price pressure in fuel industries to higher global energy prices and preparations for winter. Six energy-related sectors contributed about 0.61 percentage points to the monthly increase in the producer price index, accounting for more than 80% of the overall change.
Producer prices rose 0.7% month on month, down from September’s 1.2% increase. Annual inflation therefore accelerated even as the monthly rise slowed.
Industrial input prices outpace selling prices
The index of purchasing prices for industrial producers rose 7.9% year on year and 1.1% month on month. Both increases exceeded those in the prices producers charged for their output.
Fuel and energy purchased by industry cost 18.6% more than a year earlier, while chemical raw materials rose 16.8%. Non-ferrous metals and electrical wires were 16.7% more expensive, and textile raw material prices increased 5.3%.
Some inputs became cheaper. Building materials and non-metallic materials fell 1.9% year on year, while ferrous metal materials declined 1.1%.
Consumer inflation falls to 0.7%
Consumer prices rose 0.7% year on year, down from 0.9% in September, and were unchanged on the month. Core inflation, which excludes food and energy, eased from 1% to 0.8%.
Food prices fell 2.9% year on year. Fresh vegetables were 16.9% cheaper, pork prices dropped 8.6% and fresh fruit prices declined 3.8%. Non-food goods rose 1.5%, while service prices increased 0.7%.
Price increases did not extend to all durable goods: passenger cars were 1.9% cheaper than a year earlier and household appliances cost 2.2% less. Economists cited by Reuters said weak household demand was limiting the scope to pass higher production costs on to end customers.
Within industry, producer prices for consumer goods fell 0.1% year on year, while prices for production materials rose 7.4%.
Sources: National Bureau of Statistics of China, October PPI and CPI releases and accompanying commentary, 9 November 2026; Reuters, 9 November 2026. Polish original.
