China’s factory-gate prices showed more signs of improvement in December, with the rate of decline further narrowing, official data showed Friday.
China’s producer price index (PPI), which measures costs for goods at the factory gate, went down 1.9 percent year on year in December, narrowing by 0.3 percentage points compared to the previous month, the National Bureau of Statistics (NBS) said.
For the full year of 2025, the PPI declined by 2.6 percent, according to the data.
Every month, the PPI rose 0.2 percent in December, 0.1 percentage point higher than the increase recorded in November.
The PPI has increased every month for three consecutive months, said NBS statistician Dong Lijuan, who noted that improvements in the supply and demand structure led to price increases in certain sectors such as the coal mining and processing industries.
In December, rising international non-ferrous metals prices drove month-on-month price increases in the domestic non-ferrous metals industry, while lower international crude oil prices led to price drops in the domestic oil extraction and refining sectors, Dong added.
Dong attributed the narrower year-on-year decline in PPI to the continued effects of China’s macro policies, including accelerated efforts to develop a unified national market, the expansion of new quality productive forces, and the unleashing of consumption potential.
Friday’s data also showed that China’s consumer price index (CPI), a key measure of inflation, rose 0.8 percent year-over-year in December. For the whole year of 2025, the CPI stayed flat.
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