China’s producer prices fell 0.9% year-on-year in February 2026, easing from a 1.4% decline in January and outperforming market expectations of a 1.1% drop. This was the mildest bout of producer-price deflation since July 2024, underscoring Beijing’s ongoing efforts to rein in excessive price competition.
Prices for production materials declined at a slower pace (-0.7% vs. -1.3% in January), with deflation easing for raw materials (-1.9% vs. -2.0%) and intermediate goods (-5.3% vs. -8.1%). Meanwhile, prices for processed goods returned to growth, rising 0.3% after a 0.4% decline in the previous month.
Consumer goods prices also fell more moderately (-1.6% vs. -1.7%), with slower declines in clothing (-1.0% vs. -0.7%), food (-1.8% vs. -1.9%), and durable goods (-1.6% vs. -1.8%). Deflation in daily-use items, however, was unchanged at 1.8%.
On a monthly basis, producer prices were up 0.4%, the same rate as in January.
