China’s PPI rose +4.1% YoY and fell -0.3% MoM in June 2026, while producer purchase prices increased +6.4% YoY and declined -0.2% MoM, indicating strong upstream price pressures alongside short-term easing.

• Ex-factory prices of industrial producers increased +4.1% YoY, with production materials rising +5.5% YoY and contributing about +4.28 ppts to PPI, showing that upstream sectors drove most of the annual increase.
• Within production materials YoY, mining prices surged +16.5%, raw materials rose +8.6%, and processing increased +3.0%, indicating broad-based strength across upstream industries.
• Consumer goods prices fell -0.9% YoY, subtracting about -0.20 ppts from PPI, with food (-2.1%), clothing (-1.0%), and daily necessities (-1.0%) declining, highlighting continued weakness in downstream consumer sectors.
• Producer purchase prices rose +6.4% YoY, led by non-ferrous metals (+21.6%), fuel and power (+11.8%), and chemical raw materials (+11.5%), indicating strong input cost pressures across key industrial inputs.
• On a MoM basis, PPI declined -0.3%, driven by a -0.3% drop in production materials, including extractive industries (-0.9%), raw materials (-1.2%), and processing (-0.2%), pointing to a broad-based monthly pullback.
• Consumer goods prices also fell -0.3% MoM, with food down -0.8% and daily necessities -0.1%, indicating continued short-term weakness in consumer-related pricing.
• Producer purchase prices declined -0.2% MoM, with chemical raw materials (-1.3%), fuel and power (-0.5%), and building materials (-0.4%) falling, while textile raw materials (+0.7%) and non-ferrous metals (+0.1%) rose, showing mixed but generally softer input cost dynamics.
• For H1 2026, PPI increased +1.5% YoY and purchase prices rose +2.4% YoY, indicating that despite strong June YoY readings, price growth has been more moderate on a year-to-date basis.