Photo courtesy of Anadolu.
China’s producer prices increased in March, snapping a prolonged period of contraction as global commodity and energy costs pushed up production expenses.
Figures released by the National Bureau of Statistics showed the producer price index rose by 0.5 percent year on year, while the consumer price index posted a 1 percent increase.
The latest data marked the first uptick in factory gate prices after 41 consecutive months of decline that began in late 2022.
A senior statistician from the agency said higher global fuel and commodity prices tied to tensions in the Middle East drove up costs across industries, with imported inflation seen as a key factor behind the shift.
The official also said government measures to reduce excess capacity and curb price cutting competition improved supply and demand conditions, adding to upward pressure on prices.
Prior to March, the PPI had recorded steady declines over the past three years, including drops in 2023, 2024, and 2025, as well as continued decreases in January and February.
Consumer inflation also showed modest growth, with March extending recent gains though overall price increases have remained relatively subdued since 2023.
Meanwhile, disruptions in tanker movement through the Strait of Hormuz, a critical route for global oil and gas trade, raised concerns over supply and contributed to rising energy prices affecting import dependent economies such as China.