The National Bureau of Statistics reported that China’s producer price index rose 3.8 percent year on year in August 2026, compared with 3.5 percent in July. The PPI also rose 0.4 percent month on month, reversing a 0.7 percent decline in July.
August’s annual reading was higher than the 3.6 percent forecast in a Wind poll.
Reuters said the renewed increase in factory-gate inflation came as energy and commodity costs climbed, despite weak domestic demand.
Data Snapshot
| Metric | Current | Previous | Change | Period | As of | Source |
|---|---|---|---|---|---|---|
| Producer price index, year on year | 3.8 percent | 3.5 percent in July | accelerated from 3.5 percent in July | August 2026 | 2026-09-09 | National Bureau of Statistics of China |
| Producer price index, month on month | 0.4 percent | -0.7 percent in July | swung from a 0.7 percent decline the previous month | August 2026 | 2026-09-09 | National Bureau of Statistics of China |
| Coal mining prices, year on year | 26.6 percent | — | — | August 2026 | 2026-09-09 | South China Morning Post |
| Non-ferrous metal processing prices, year on year | 20.8 percent | — | — | August 2026 | 2026-09-09 | South China Morning Post |
| Oil and gas extraction industry prices, year on year | 10.5 percent | — | — | August 2026 | 2026-09-09 | South China Morning Post |
| Economists’ PPI projection | 3.6 percent | — | — | August 2026 forecast | 2026-09-09 | South China Morning Post |
August PPI beats the Wind forecast as monthly prices reverse
The National Bureau of Statistics of China reported that August PPI rose 3.8 percent year on year, up from 3.5 percent in July.
The index also rose 0.4 percent month on month, reversing July’s -0.7 percent result, according to the NBS release. The annual reading was above the 3.6 percent forecast in a Wind poll cited by the South China Morning Post.
China PPI year-on-year chart for all industrial products — Source: TrendForce DataTrack
Coal, metals and oil-and-gas prices drive the factory-cost increase
Energy and industrial-material categories recorded particularly large annual price gains in August: coal-mining prices rose 26.6 percent year on year, non-ferrous metal-processing prices increased 20.8 percent, and oil-and-gas extraction prices rose 10.5 percent, according to figures reported by the South China Morning Post. The NBS said higher international crude-oil and non-ferrous-metal prices raised prices in related domestic sectors. The available data do not provide a broader breakdown of every industry’s contribution to the 3.8 percent headline PPI rate.
Energy-led cost pressure rises despite weak domestic demand
The August acceleration occurred despite weak domestic demand, according to Reuters. Its report linked upward pressure on energy and commodity costs to Middle East supply risks.
That context distinguishes a cost-driven factory-price increase from evidence of a broad domestic-demand recovery. Higher international crude oil and non-ferrous metal prices, as described by the NBS, fed into related Chinese sectors while the domestic-demand backdrop remained weak.
August therefore delivered a 3.8 percent year-on-year PPI increase and a 0.4 percent month-on-month rise, following July readings of 3.5 percent and -0.7 percent, respectively.
