China's Producer Prices Rise 5% as Energy Costs Drive Annual Inflation
China: China's producer price index (PPI) increased by 5.0% year-on-year in September 2026, marking its highest annual growth rate since June 2022, according to the National Bureau of Statistics (NBS). The increase exceeded the 4.5% forecast by economists surveyed by Reuters and was driven by higher fuel costs and coal prices. Coal prices were influenced by demand for winter heating, supply constraints in producing regions and expectations of increases in international coal prices. Meanwhile, consumer price inflation stood at 0.9% year-on-year, below the 1.0% forecast, indicating a difference between producer and consumer price movements.
Gasoline prices increased by 16.6% year-on-year, contributing approximately 0.47 percentage points to consumer inflation, according to NBS statistician Dong Lijuan. In contrast, food prices declined by 1.7%, reducing the consumer inflation rate by approximately 0.29 percentage points, while core inflation, excluding food and energy, stood at 1.0%. The figures reflect the influence of energy costs on industrial prices, while consumer price movements remained comparatively limited. China's economy recorded GDP growth of 4.3% year-on-year in the second quarter of 2026, with authorities indicating the possibility of additional macroeconomic policy measures to support economic activity.
Source: CNBC
