China’s PPI rose +0.4% MoM and +3.8% YoY in August 2026, while industrial producer purchase prices increased +0.3% MoM and +5.8% YoY, indicating firmer upstream inflation after July’s monthly declines.

• Industrial producer ex-factory prices increased +3.8% YoY, with production materials rising +5.0% and contributing about +3.92 ppts to the headline PPI, showing that upstream categories remained the main source of annual producer inflation.

• Within production materials, mining prices rose +17.8% YoY, raw materials +6.7%, and processing prices +3.1%, indicating broad annual price strength across upstream industrial stages.

• Consumer goods prices fell -0.5% YoY, subtracting about -0.10 ppts from the overall PPI. Food prices declined -2.3%, clothing -1.2%, and general daily necessities -0.8%, while durable consumer goods increased +1.2%.

• Industrial producer purchase prices rose +5.8% YoY, led by non-ferrous metals and wires (+19.8%), fuel and power (+9.8%), and chemical raw materials (+9.5%), while building materials and non-metallic products fell -3.2%.

• On a MoM basis, PPI increased +0.4%, reversing July’s -0.7% decline. Production-material prices rose +0.4%, with mining up +2.7% and raw materials +0.8%, while processing prices were unchanged.

• Consumer goods prices increased +0.2% MoM, with durable consumer goods up +0.6%, food and clothing unchanged, and general daily necessities down -0.2%, showing a modest monthly pickup in downstream prices.

• Producer purchase prices increased +0.3% MoM, with fuel and power up +1.4%, non-ferrous metals and wires +0.8%, and textile raw materials +0.6%, while ferrous metals fell -0.6% and chemical raw materials declined -0.4%.

• From January to August, PPI increased +2.0% YoY and producer purchase prices rose +3.2% YoY, while major industries showed sharp divergence, including coal mining and washing at +26.6% YoY, non-ferrous metal smelting at +20.8%, petroleum and fuel processing at +11.1%, and automobile manufacturing at -2.2%.