China’s consumer price index (CPI) moved back into positive territory in August 2026, offering a tentative sign of easing deflationary pressures in the world’s second-largest economy. According to data updated on 9 September 2026, CPI rose 0.4% month-over-month, compared with a 0.1% decline in July 2026.
The turnaround marks a notable shift in price dynamics: July’s -0.1% reading had underscored concerns over weak domestic demand and persistent disinflation. The latest August figure indicates that consumer prices are now rising again on a month-over-month basis, suggesting a modest improvement in spending or cost conditions.
On a month-over-month comparison, the “actual” August reading of 0.4% represents a clear rebound from the “previous” July change of -0.1%. While the move is still modest, the upturn will be closely watched by markets and policymakers as they assess the strength and durability of China’s price recovery.
