Story · China · Published 30 Aug 2026, 07:41
China producer prices were 3.5% higher compared with a year earlier in July
China's industrial producer-price index was 3.5% higher in July 2026 than in July 2025, but fell 0.7% between June 2026 and July 2026.
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30-second read
China's industrial producer-price index was 3.5% higher in July 2026 than in July 2025, but fell 0.7% between June 2026 and July 2026.
3.5%
China industrial PPI year-on-year — July 2026
-0.7%
China industrial PPI month-on-month — June 2026 to July 2026
1.8%
China industrial PPI average year-on-year — January to July 2026
Exam link: Producer prices measure price changes faced by industrial producers and can indicate cost pressure earlier in the supply chain.
Understand the story +
NBS producer-price data show a 3.5% compared with a year earlier change in July 2026 alongside a -0.7% compared with the previous month change from June 2026 to July 2026. From January to July 2026, producer prices averaged 1.8% higher than a year earlier.
What happened
China's industrial producer-price index was 3.5% compared with a year earlier in July 2026. From June 2026 to July 2026, the index fell 0.7%. Across January to July 2026, the average compared with a year earlier change was 1.8%.
Why it matters
Producer prices measure price changes faced by industrial producers and can indicate cost pressure earlier in the supply chain. Higher producer prices can feed into consumer inflation, but the pass-through depends on firms' margins, productivity, demand and competition.
Economic context
Use the 3.5% compared with a year earlier PPI figure as evidence of producer-price pressure in China in July 2026, while noting that the -0.7% compared with the previous month movement from June 2026 to July 2026 points in a different short-run direction. PPI is not the same as CPI and does not translate one-for-one into consumer inflation.
All key data +
- China industrial PPI year-on-year — July 2026
- 3.5%
- China industrial PPI month-on-month — June 2026 to July 2026
- -0.7%
- China industrial PPI average year-on-year — January to July 2026
- 1.8%
Use it in an exam +
Evidence
3.5% — China industrial PPI year-on-year — July 2026
Explain
Producer prices measure price changes faced by industrial producers and can indicate cost pressure earlier in the supply chain. Higher producer prices can feed into consumer inflation, but the pass-through depends on firms' margins, productivity, demand and competition.
Evaluate
Use the 3.5% compared with a year earlier PPI figure as evidence of producer-price pressure in China in July 2026, while noting that the -0.7% compared with the previous month movement from June 2026 to July 2026 points in a different short-run direction. PPI is not the same as CPI and does not translate one-for-one into consumer inflation.
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