China’s PPI fell -1.4% YoY and rose +0.4% MoM in January 2026, indicating easing factory-gate deflation with firmer monthly momentum.

• Ex-factory prices declined -1.4% YoY, narrowing by 0.5 ppts from the prior month, while rising +0.4% MoM (+0.2 ppts), showing a slower annual pace of decline alongside stronger sequential gains.

• Producer purchase prices also fell -1.4% YoY (narrowing by 0.7 ppts) and increased +0.5% MoM (+0.1 ppts), pointing to improved short-term input cost dynamics despite continued annual deflation.

• Means of production prices fell -1.3% YoY, led by mining (-8.1%), raw materials (-2.0%), and processing (-0.4%), contributing about -1.06 ppts to headline PPI; MoM, means of production rose +0.5%.

• Means of living prices declined -1.7% YoY, with food (-1.9%), clothing (-0.7%), and general daily necessities and durables (both -1.8%) weighing on the index; MoM, living goods rose +0.1%.

• Among purchase prices YoY, fuel and power (-7.1%), chemical raw materials (-5.8%), and building materials (-4.7%) saw notable declines, while non-ferrous metal materials and wires surged +16.1%, highlighting divergence in upstream cost pressures.

• On a MoM basis, purchase prices were supported by non-ferrous metals (+4.5%) and agricultural products (+0.7%), while fuel and power (-0.7%) and building materials (-0.6%) declined, reflecting mixed short-term input trends.

• By major industries YoY, oil and gas extraction fell -16.7% and petroleum processing -11.5%, while non-ferrous metal mining rose +22.7% and non-ferrous smelting +17.1%, underscoring continued weakness in energy-related sectors and strength in select metals.