China PPI Turns Positive in March 2026 as Industrial Prices Rebound

China's producer price index (PPI) returned to growth in March 2026, signaling a rebound in upstream industrial pricing after recent declines. Both factory-gate prices and input costs showed stronger momentum on a monthly basis, with year-on-year figures shifting into positive territory.

PPI Rebounds to Growth in March

In March, China's industrial producer prices increased 0.5% year-on-year, reversing a 0.9% decline recorded in the previous month. On a monthly basis, PPI rose 1.0%, with the growth rate expanding by 0.6 percentage points compared to February.

Meanwhile, industrial producer purchase prices rose 0.8% year-on-year, following a 0.7% decline in the prior month. Month-on-month, purchase prices increased 1.2%, with the pace accelerating by 0.5 percentage points.

For the first quarter of 2026, producer prices remained slightly under pressure overall:

• PPI declined 0.6% year-on-year

• Purchase prices fell 0.5% year-on-year

Year-on-Year Breakdown: Production Prices Drive Gains

Upstream Production Materials Lead Increase

In March, prices for means of production rose 1.0% year-on-year, contributing approximately 0.81 percentage points to the overall PPI increase.

• Mining industry: +2.0%

• Raw materials industry: +1.1%

• Processing industry: +0.9%

Consumer Goods Continue to Weigh on PPI

Prices for consumer goods declined 1.3% year-on-year, dragging down the overall PPI by about 0.28 percentage points.

• Food: −1.7%

• Clothing: −1.1%

• Daily consumer goods: −1.4%

• Durable consumer goods: −1.0%

Input Prices: Sharp Divergence Across Categories

Among industrial purchase prices:

Declines:

• Building materials and non-metallic materials: −4.4%

• Fuel and power: −3.8%

• Agricultural and sideline products: −2.7%

• Ferrous metal materials: −2.3%

• Chemical raw materials: −2.2%

• Textile raw materials: −0.6%

Increase:

• Non-ferrous metals and wires: +22.3%

Month-on-Month Trends: Stronger Momentum in March

Production Prices Accelerate

On a monthly basis, means of production prices increased 1.3%, contributing approximately 1.01 percentage points to overall PPI growth.

• Mining industry: +3.9%

• Raw materials industry: +2.4%

• Processing industry: +0.5%

Consumer goods prices edged down 0.1%, slightly offsetting the overall increase.

• Food: −0.2%

• Clothing: −0.1%

• Daily consumer goods: +0.1%

• Durable consumer goods: −0.1%

Input Prices Broadly Rise

Industrial purchase prices showed broad-based monthly increases:

Increases:

• Fuel and power: +3.6%

• Chemical raw materials: +2.9%

• Non-ferrous metals and wires: +1.5%

• Textile raw materials: +0.9%

• Ferrous metal materials: +0.2%

Declines:

• Agricultural and sideline products: −0.5%

• Building materials and non-metallic materials: −0.1%

Key Takeaways

• China's PPI turned positive in March 2026, marking a notable shift from recent declines.

• Upstream sectors, especially mining and raw materials, were the primary drivers of price growth.

• Consumer goods prices continued to decline, limiting the overall increase.

• Input costs showed strong monthly momentum, with fuel, chemicals, and metals leading gains.

• Despite March's rebound, first-quarter data indicates lingering deflationary pressure across industrial prices.

This latest data suggests improving pricing power in upstream industries, while downstream demand remains relatively subdued.