Beijing (AFP) - Producer prices in China rose to their highest level in four years in October due to the rebound in energy costs, according to official data released on Monday.

First modification: 11/09/2026 - 17:41

Factory costs rose 5.7% year-on-year in October, indicated the National Statistics Office (ONE), above the 5.3% projection of a survey by the financial agency Bloomberg among economists.

This is the fastest increase in the producer price index since June 2022.

The index has risen steadily since the start of the Middle East war in February, after three years of price declines.

“More expensive global energy and AI electronics prices (continued) to be the main drivers,” wrote Nguyen Hoang Nam of Capital Economics following the data release.

"We expect the external price shock to persist in the coming months but to fall next year," he added.

Other data released on Monday by the ONE reveal that domestic demand in the Chinese economy remains weak.

The consumer price index slowed to 0.7% year-on-year in October, from 0.9% in September.

The figure was far from the Chinese government's inflation goal for the year, of around 2%.

Despite weak domestic activity, China's economy has been supported by a historic boom in its exports, driven in part by global demand for AI products.

© 2026 AFP

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