Business · Economy · 8 hrs ago
China’s producer prices rise 5.7% as consumer inflation slows
China’s producer prices rose 5.7% in October compared with a year earlier, up from 5% in September.
The increase was the fastest since June 2022, according to the figures from China’s National Bureau of Statistics.
Higher energy and raw-material costs helped push up prices, amid global energy uncertainty linked to conflict in the Middle East.
Consumer inflation slowed to 0.7%, from 0.9% in September, while underlying inflation also eased.
This means factory costs are not fully reaching consumers, as weak domestic demand limits companies’ ability to raise prices.
That leaves businesses facing pressure on profit margins and points to continuing weakness in China’s economy despite rising producer prices.
An economist cited in the coverage expects the price shock to keep inflation high in the coming months, then fade next year.
China’s producer price index rose 5.7% year on year in October, its fastest increase since June 2022.
The increase followed a 5% rise in September and exceeded economists’ forecasts.
Consumer price inflation slowed to 0.7% in October from 0.9% the previous month.
Core consumer inflation, which excludes food and energy, fell to 0.8% from 1%.
Reports linked higher factory costs to energy prices, while weak domestic demand limited how much companies could pass on to consumers.
- Who
- China’s National Bureau of Statistics reported the figures.
- What
- Producer prices rose 5.7% year on year in October, while consumer inflation slowed to 0.7%.
- When
- October 2026; the data was released on Monday, November 9.
- Where
- China.
- Why
- Reports cited higher energy and raw-material costs for producer price increases and weak domestic demand for subdued consumer inflation.
This story does not have two clearly opposing sides.
China’s producer price index rose 5% year on year.
Producer prices rose 5.7% year on year, while consumer inflation slowed to 0.7%.
China’s National Bureau of Statistics released the October figures.
- Producer price inflation
- 5.7% year on year in October
- Previous producer price inflation
- 5% year on year in September
- Consumer price inflation
- 0.7% year on year in October
- Core consumer inflation
- 0.8% in October
- Previous consumer price inflation
- 0.9% year on year in September
5 sources
China’s producer prices accelerate even amid weak consumer inflation
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Chinese Producer Inflation Hits 5.7% for Post-Covid Era High
What people are saying
The price shock caused by the conflict in the Middle East will keep inflation high in the coming months, but its impact is expected to ease next year.
The persistence of low consumer inflation reflects continued weakness in domestic demand.