China’s producer inflation accelerated to 3.8% in August — CNBC Top News
In China, the producer price index rose by 3.8% year-on-year in August, exceeding economists’ forecast of 3.6%. In July, the figure was 3.5%, the lowest pace in three months. CNBC Top News reports, citing data from China’s National Bureau of Statistics.
Consumer prices also accelerated
Consumer inflation stood at 0.8% year-on-year in August, matching the estimate of economists surveyed by Reuters. In July, consumer prices increased by 0.5%.
The core consumer price index, which excludes volatile food and energy prices, rose by 1%. A month earlier, its growth was 0.9%.
Factors behind price growth
Dong Lijuan, chief statistician at China’s National Bureau of Statistics, linked the acceleration of inflation to fluctuations in global commodity prices, seasonal increases in food prices, and rising demand in high-tech industries.
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Economists noted that a significant part of the acceleration in producer inflation is explained by a favorable base effect and higher commodity prices, rather than a substantial strengthening of household demand. In their assessment, domestic consumption in China remains weak as the effect of trade-in subsidy programs and other consumption support measures is fading.
Weaker economic indicators
Danske Bank lowered its forecast for China’s GDP growth in 2026 from 4.8% to 4.6%, citing weak consumer data in recent months. The bank also reduced its forecast for consumer inflation this year from 1% to 0.8%.
Growth in the world’s second-largest economy slowed after a strong start to the year: the pace of expansion in the second quarter was the lowest in more than three years. July data also recorded weakening retail sales and urban investment. The urban youth unemployment rate rose to 17.9% in July, the highest level since August 2025.
