China’s producer prices rose 4.1% year-on-year in June 2026, up from a 3.9% increase in May and in line with market expectations. This marked the fourth consecutive monthly gain and the fastest pace since July 2022, supported by stronger commodity prices and higher production costs as ongoing geopolitical tensions in the Middle East continued to bolster global energy and raw material markets.
Prices of production materials accelerated (5.5% vs 5.2% in May), driven by further increases in mining (16.5% vs 15.8%), raw materials (8.6% vs 9.2%), and processing (3.0% vs 2.3%). By contrast, the decline in consumer goods prices deepened (-0.9% vs -0.8%), with continued falls in food (-2.1% vs -1.8%), clothing (-1.0% vs -1.0%), and daily-use goods (-1.0% vs -1.0%), while prices of durable goods remained broadly flat (0.1% vs 0.0%).
Over the first half of the year, however, the Producer Price Index (PPI) fell 0.3%, reversing the 1.5% increase recorded in May, reflecting seasonal factors and the impact of moderating crude oil prices.
