China Producer Prices Rise 4.1% in June, Fastest Pace Since 2022

China’s producer prices rose 4.1% year over year in June, accelerating from a 3.9% increase in May and marking the strongest annual gain since July 2022, according to data released by the National Bureau of Statistics of China.

The reading matched market expectations and extended the country’s producer inflation streak to a fourth consecutive month, reflecting higher commodity prices and rising production costs amid continued geopolitical tensions in the Middle East, which have supported global energy and raw material prices.

Production material costs accelerated to 5.5% year over year from 5.2% in May. Mining prices continued to post the largest increase, rising 16.5%, compared with 15.8% in the previous month. Prices for raw materials increased 8.6%, while processing industries recorded a faster 3.0% gain, up from 2.3% in May.

Consumer goods prices, however, remained under pressure, declining 0.9% from a year earlier, compared with a 0.8% decrease in the previous month. Food prices fell 2.1%, extending the decline from May’s 1.8% drop, while clothing prices decreased 1.0% and daily-use goods also declined 1.0%. Durable consumer goods remained broadly stable, edging up 0.1% after recording flat growth in the previous month.

Despite June’s stronger annual reading, producer prices for the first six months of 2026 declined 0.3% compared with the same period a year earlier. The cumulative performance reversed the 1.5% increase recorded through May, reflecting seasonal factors and the easing of crude oil prices during part of the first half of the year.

The latest figures suggest that higher input costs continue to affect China’s industrial sector, while softer consumer goods prices indicate that downstream pricing power remains relatively restrained. The divergence underscores the uneven pace of price pressures across the country’s manufacturing and consumer sectors.

Source: National Bureau of Statistics of China