China's producer prices rise 5.0% in September, up 1.2 points from August

China's National Bureau of Statistics reported on 14 October 2026, alongside consumer inflation, that the producer price index (PPI), which measures costs at the factory gate, rose 5.0% on the year in September. That was 1.2 percentage points faster than in August, which means the August rate was 3.8%.

Why it matters

The PPI is the gauge of costs that firms face before goods reach shops. A rise in producer prices can feed into consumer prices later, although the link is loose, and firms may absorb part of it in their margins. The consumer price index for September rose only 0.9% (report), so the two indexes are moving apart: costs at the factory gate are rising much faster than prices to consumers.

The Xinhua report gives the headline rate and the change from August; it does not break the producer price index down by sector, so the drivers cannot be confirmed from it.

For traders

China's producer prices feed into the Australian dollar, because China's imports of raw materials and its factory costs affect demand for Australian commodities. The Reserve Bank of Australia raised its cash rate to 4.60% on 29 September (report). For a fuller account of how China's price data are built, see China's August inflation report. Live prices: AUD/USD.