Rising energy costs lift China's producer, consumer inflation in August
China's producer and consumer inflation rose in August, driven primarily by higher energy costs linked to Middle East conflict supply risks. Despite this, domestic demand remains weak, complicating the country's economic recovery.
Why it matters
Rising inflation in China, the world's second-largest economy, has global implications for supply chains and monetary policy.
Rising energy costs lift China's producer, consumer inflation in August Reuters Tue, September 8, 2026 at 11:50 PM EDT 3 min read BEIJING, Sept 9 (Reuters) - China's factory-gate inflation gathered pace in August and consumer price growth quickened, driven largely by elevated energy costs tied to supply risks from the Middle East war, even as underlying domestic demand remained subdued.
With an export-led rebound cushioning entrenched domestic weakness, the economy faces lingering headwinds from trade tensions, lacklustre consumer demand and weather-related disruptions, casting a shadow over the recovery's momentum.
The producer price index rose 3.8% from a year earlier, National Bureau of Statistics data showed, accelerating from 3.5% in July and beating a forecast increase of 3.6% in a Reuters poll.
The consumer price index (CPI) was up 0.8% year-on-year, versus a 0.5% increase in July and matching the poll.
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