FX.co ★ China Producer Prices Drop More than Expected

In November 2025, China's producer prices experienced a 2.2% year-on-year decline, slightly more pronounced than the 2.1% dip observed in October, marking the 38th consecutive month of decrease. This outcome was marginally below market predictions, which anticipated a 2.0% decline amid intensified price competition. The decrease in consumer goods prices accelerated during November, falling by 1.5% compared to a 1.4% drop in October. This trend was driven by more significant reductions in prices of durable goods, which sank by 3.6% from the previous 3.2% decline. Meanwhile, prices for food and clothing continued their modest descent, with food prices declining by 1.5%, a slight improvement from October's 1.6%, and clothing remaining consistent at a 0.3% drop. On the other hand, prices for daily-use goods saw a slight increase, rising by 1.1% compared to 1.0% in October. In the realm of production materials, prices remained subdued, witnessing a 2.4% decrease, consistent with October's figures. This was characterized by ongoing declines in the sectors of mining, which fell by 6.1% (an improvement from October's 7.8% drop), raw materials, which decreased by 2.9% compared to a previous 2.5%, and processing, holding steady at a 1.9% decrease. Throughout the first eleven months of the year, producer prices contracted by 2.7% overall. On a monthly basis, the Producer Price Index (PPI) edged up by 0.1%, maintaining the same growth rate as in October.