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Macro EconomyMediumUpdated×2•Originally published 14 October 2026•Updated 14 October 2026•
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China Producer Prices Rise 5% in September as Consumer Inflation Lags

Key Facts

1Producer prices in China rose faster than expected, reaching their highest level since June 2022.
2The increase in producer prices exceeded the 4.5% expected by economists and the 3.8% recorded in the previous month.

China's Producer Price Index (PPI) rose 5% year-on-year in September 2026, marking its fastest growth since June 2022. Reuters reported that the figure exceeded the 4.5% forecast and the previous month's 3.8% rate, driven by a 17% surge in gasoline prices linked to Middle East supply disruptions.

Data from the National Bureau of Statistics showed a divergence in inflationary pressures as consumer price inflation remained subdued at 0.9%, missing the 1% expectation. According to CNBC, the modest CPI growth amid surging producer costs indicates weak domestic demand and challenges for firms in passing higher industrial costs to consumers.

Latest Updates · 1

  1. Notable·

    Update: Separate data showed that China's Consumer Price Index (CPI) for September 2026 rose less than analysts had expected. This divergence between rising production costs and weaker consumer inflation suggests varying challenges facing domestic demand within the Chinese economy.