China's factory prices rise 5.7% while shop prices rise only 0.7%

Factories. PPI tracks the prices factories charge for their goods. In October it rose 5.7% on the year and 0.7% on the month. The prices factories pay for their own inputs rose even faster: 7.9% on the year. Mining prices were up 27.9% and raw materials 11.6%. Coal mining rose 36.6%, oil and gas extraction 35.0% and fuel processing 29.9%.

Why. Reuters links the rise to high global oil prices amid the conflict in the Middle East. The NBS also says higher global energy prices lifted prices in oil, gas and coal. These energy industries made up more than 80% of the monthly PPI rise. The NBS also points to fast AI development supporting prices in some industries. For example, electronics and communications equipment rose 5.9% on the year.

Shops. CPI was flat on the month and up 0.7% on the year. Food got 2.9% cheaper: fresh vegetables fell 16.9% and pork 8.6%. Petrol went the other way, up 22.4%. Core inflation, without food and energy, was 0.8% on the year. From January to October, CPI averaged a 0.9% rise.

What it means. Input costs are rising, but buyers at home are not ready to pay more. So factories are absorbing part of the higher costs for now. That squeezes their margins but keeps consumer prices low.

已确认的事实

• In October 2026, China's producer prices rose 5.7% on the year and 0.7% on the month.^[1][3]
• Consumer prices rose 0.7% on the year and were flat on the month; core inflation without food and energy was 0.8%.^[2][3]
• In September PPI was 5.0% and CPI 0.9%; a Reuters poll expected 5.3% and 0.8% for October.^[3]
• Prices factories pay for inputs rose 7.9% on the year; fuel and power rose 18.6%.^[1]
• Food prices fell 2.9% on the year, fresh vegetables 16.9% and pork 8.6%.^[2]
• Coal mining prices rose 36.6% and oil and gas extraction 35.0% on the year.^[1]

影响

• 已确认Chinese factories are paying much more for energy and raw materials than a year ago.
• 我们的解读If oil stays expensive, part of the higher costs may reach Chinese export prices. This is our view.
• 我们的解读Low price growth in shops leaves Chinese authorities room for steps to support demand. This is our view.

仍未知

• How long energy prices stay high
• Whether exporters start raising prices for buyers abroad
• Whether Chinese authorities respond with new demand support

影响到谁

China, World. People who follow inflation, oil, commodities and Chinese stocks

来源

1. National Bureau of Statistics of China: 2026年10月份工业生产者出厂价格同比上涨5.7% 环比上涨0.7% 2026年11月9日 · 官方
2. National Bureau of Statistics of China: 2026年10月份居民消费价格同比上涨0.7% 2026年11月9日 · 官方
3. Reuters via Yahoo Finance: China's factory-gate inflation at fastest in nearly 4-1/2 years in October, while CPI rise moderates 2026年11月9日 · 媒体
4. SMM: NBS: October CPI up 0.7% YoY, PPI up 5.7% YoY 2026年11月9日 · 媒体