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Macro EconomyMediumUpdated•Originally published 14 October 2026•Updated 14 October 2026•
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China PPI Inflation Hits Highest Since Mid-2022 Driven by Energy Costs

Key Facts

1China's PPI inflation reached its highest level since June 2022.
2Chinese consumer prices edged higher, driven by rising energy and technology costs.

China's Producer Price Index (PPI) inflation reached its highest level since June 2022, rising 5.0% year-on-year in September. ING reported that the figure comfortably beat market forecasts of 4.4%, driven primarily by producer goods inflation and the mining sector. Meanwhile, Consumer Price Index (CPI) inflation edged higher to 0.9% year-on-year, remaining broadly in line with expectations.

Rising energy and technology costs were the primary drivers of the uptick, with transportation fuels increasing 14.9% and communication devices rising 14.3% in September. According to ING, oil and gas extraction saw a 24.5% year-on-year increase, while deflationary pressures persisted in other areas as auto prices fell 1.7% and rental prices declined 0.6% for a sixth consecutive month.

Latest Updates · 1

  1. Major·

    Update: China's trade data released on October 14, 2026, showed exports grew 36% year-on-year in September, beating the 25.5% forecast, while imports rose 31%. Alongside these figures, Morgan Stanley raised its Brent crude forecast to $105 per barrel, as the PBOC set the USD/CNY mid-point at 6.7249, a weaker level than market estimates.