China’s producer inflation rose to 3.8% year-on-year in August 2026, up from July’s three-month low of 3.5% and slightly above market expectations of 3.7%. The increase was driven largely by higher energy costs amid global oil price shocks linked to disruptions in the Strait of Hormuz.
Inflation for production materials accelerated to 5.0% from 4.8% in July, supported by stronger price gains in mining (17.8% vs 16.4%) and raw materials (6.7% vs 6.1%), while prices in processing industries rose at the same pace as in July (3.1%).
By contrast, prices for consumer goods fell more moderately, declining 0.5% year-on-year after a 0.8% drop in July. Within this category, prices continued to fall for food (-2.3% vs -2.1%), clothing (-1.2% vs -1.1%), and daily-use goods (-0.8% vs -1.0%), while prices for durable consumer goods strengthened, rising 1.2% after a 0.4% increase in July.
On a monthly basis, producer prices increased 0.4% in August, rebounding from a 0.7% decline in July. Over the first eight months of the year, producer prices were up 2.0%, slightly faster than the 1.8% rise recorded in the same period a year earlier.
