China’s PPI fell -1.9% YoY and rose +0.2% MoM in December 2025, showing easing deflation with firmer sequential price momentum.

• Ex-factory prices declined -1.9% YoY, narrowing by 0.3 ppts from November, while rising +0.2% MoM (+0.1 ppts), indicating a slower pace of factory-gate deflation alongside stronger monthly gains.

• Producer purchase prices fell -2.1% YoY (narrowing by 0.4 ppts) and rose +0.4% MoM (+0.3 ppts), pointing to improved short-term cost dynamics despite ongoing annual declines.

• Prices of means of production fell -2.1% YoY, led by mining (-4.7% YoY), raw materials (-2.6% YoY), and processing (-1.6% YoY), contributing about -1.53 ppts to the headline PPI.

• Consumer goods prices declined -1.3% YoY, with food (-1.5% YoY) and durable goods (-3.5% YoY) weighing on the category, while general daily necessities rose +1.4% YoY, highlighting mixed downstream pricing.

• On a MoM basis, means of production rose +0.3%, driven by mining (+0.8% MoM), raw materials (+0.6% MoM), and processing (+0.2% MoM), while consumer goods were flat overall.

• Among purchase prices, non-ferrous metal materials and wires stood out, rising +10.5% YoY and +2.5% MoM, contrasting with continued YoY declines in fuel and power (-5.7%) and building materials (-6.4%).

• For full-year 2025, ex-factory prices fell -2.6% YoY and producer purchase prices fell -3.0% YoY, underscoring persistent but gradually moderating industrial price deflation.