China's PPI decline narrows to 2.9% as CPI falls 0.4% in August

PPI marked the first narrowing since March, signalling a modest recovery in industrial demand amid government measures to steady growth. On a month-to-month basis, the PPI halted its decline, remaining unchanged after a 0.2 per cent fall in July. For the January–August period, producer prices were 2.9 per cent lower than a year earlier.

Meanwhile, core CPI, excluding food and energy, climbed 0.9 per cent, continuing its four-month streak of gains.

NBS statistician Dong Lijuan attributed the fall in PPI to a high base in 2024 and a smaller-than-usual seasonal rise in food costs. The proactive macroeconomic policies and shifts in key industries underpinned the narrower PPI decline. Notable gains included a 1.1 per cent rise in integrated circuit packaging and testing, and a 0.9 per cent increase in shipbuilding equipment.

Rising demand for high-end consumer products also helped lift prices in selected sectors, said Chinese media outlets quoting Dong.

The data suggested that while consumer prices remain subdued, stabilisation in factory-gate costs could be an early sign of improving momentum in China’s industrial economy.

Fibre2Fashion News Desk (SG)