China's Producer Price Index Drops in December 2025 as Decline Narrows

In December 2025, China's Producer Price Index (PPI) recorded a year-on-year decline of 1.9%, with the rate of decrease narrowing by 0.3 percentage points compared to November. Month-on-month, the index rose by 0.2%, accelerating by 0.1 percentage points from the previous month. The PPI for industrial purchasers fell 2.1% year-on-year, narrowing the drop by 0.4 percentage points, while rising 0.4% month-on-month, up 0.3 percentage points from November. For the full year of 2025, the PPI for industrial producers decreased 2.6%, and the PPI for industrial purchasers dropped 3.0%.

Year-on-Year Trends in Industrial Producer Prices

In December, prices for means of production fell 2.1%, subtracting roughly 1.53 percentage points from the overall PPI. Mining industry prices dropped 4.7%, raw materials by 2.6%, and processing by 1.6%. Consumer goods prices declined 1.3%, contributing about 0.35 percentage points to the PPI. Within consumer goods, food prices fell 1.5%, clothing by 0.1%, durable goods by 3.5%, while general daily necessities rose 1.4%.

Industrial purchaser prices also saw varied movements: building materials and non-metallic products fell 6.4%; fuel and power dropped 5.7%; chemical raw materials decreased 4.9%; agricultural and sideline products fell 4.1%; ferrous metals declined 3.3%; textile raw materials fell 1.9%; while non-ferrous metals and wire products surged 10.5%.

Month-on-Month Trends in Industrial Producer Prices

Month-on-month, prices for means of production rose 0.3%, adding roughly 0.24 percentage points to the overall PPI. Mining industry prices increased 0.8%, raw materials 0.6%, and processing 0.2%. Consumer goods prices remained largely stable, with food down 0.1%, clothing up 0.2%, general daily necessities up 0.5%, and durable goods down 0.2%.

Within the industrial purchaser PPI, non-ferrous metals and wire products climbed 2.5%, fuel and power rose 1.5%, and construction materials edged up 0.1%. Conversely, ferrous metals fell 0.4%, chemical raw materials declined 0.2%, and agricultural by-products and textile raw materials each dropped 0.1%.