China’s industrial producer prices were flat MoM in September 2025 and down -2.3% YoY (vs -2.3% YoY expected), up from -2.9% YoY in August and the smallest decline since July 2024, with the pace of annual decline narrowing for a third straight month, indicating a gradual easing in deflationary pressures.

• The ex-factory price of means of production dropped -2.4% YoY, led by extractive industries (-9.0% YoY), raw materials (-2.9% YoY), and processing (-1.7% YoY). Means of living prices fell -1.7% YoY, weighed by durable consumer goods (-3.9% YoY).
• Producer purchase prices declined -3.1% YoY but rose +0.1% MoM, showing a modest rebound in input costs. Fuel & power (-8.1% YoY) and chemical raw materials (-5.5% YoY) posted sharp annual drops, while non-ferrous metal materials rose +6.6% YoY.
• On a MoM basis, extractive industry prices increased +1.2%, while processing dipped -0.1%, keeping the overall ex-factory index unchanged from August.
• Among major industries, coal mining prices fell -16.8% YoY, oil & gas extraction -8.6% YoY, and petroleum/coal processing -7.8% YoY, while non-ferrous metal mining surged +13.9% YoY.
• From January to September, ex-factory prices averaged -2.8% YoY and purchase prices -3.2% YoY, reflecting persistent but gradually narrowing declines in industrial costs through 2025.