China's September CPI rises 0.9% Y/Y, PPI accelerates to 5.0% above expectations

China’s consumer price index (CPI) rose 0.9% Y/Y in September 2026, up from 0.8% in August and marking its highest reading since June, though it came in just under consensus expectations of 1.0%. Month-on-month, consumer prices ticked up 0.2%, slowing from August's 0.4% gain.

Producer price inflation (PPI) accelerated sharply to 5.0% Y/Y in September, topping market forecasts of 4.5% and building on August’s 3.8% print. The jump represents the strongest annual gain in factory-gate prices since June 2022, primarily fueled by rising international fuel and energy expenses.

On a monthly basis, PPI increased 1.2%, its sharpest monthly rise since April, bringing year-to-date producer price growth to 2.3%.

Food prices fell 1.7% Y/Y, marking a sixth consecutive month of decline and the steepest drop in four months, largely driven by ongoing oversupply and soft domestic consumption in the pork market.

Core inflation, which excludes volatile food and energy costs, held steady at 1.0% Y/Y, matching the August rate.

Chinese stock benchmarks edged lower following the economic release. On Wednesday, the Shanghai Composite fell 0.3% to 3,791, while the Shenzhen Component was little changed to around 12,351. The offshore yuan traded around 6.69 per dollar.

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