China Producer Prices Change

China’s producer prices fell 2.3% year-on-year in September 2025, easing from a 2.9% drop in the previous month and marking the mildest decline since February, though extending their contraction into a third consecutive year. The latest result, which came in line with market forecasts, reflected Beijing’s stepped-up efforts to curb excess capacity and pre-holiday activity ahead of the Golden Week. Production material costs declined at a softer pace (-2.4% vs -3.2% in August), with easing falls in mining (-9.0% vs -11.5%), raw materials (-2.9% vs -4.1%), and processing (-1.7% vs -2.2%). Meanwhile, consumer goods prices remained weak (-1.7% vs -1.7%), weighed down by food (-1.7% vs -1.7%) and durable goods (-3.9% vs -3.7%). Clothing prices fell by 0.3% after staying unchanged previously, while costs of daily-use goods accelerated (0.7% vs 0.4%). In the first eight months of the year, producer prices fell 2.8%. On a monthly basis, the PPI remained flat, showing no change from August.