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China’s consumer prices rose more than expected in August while factory-gate inflation accelerated, pointing to a modest improvement in domestic price pressures as policymakers seek to shore up demand in the world’s second-largest economy.
The consumer price index (CPI) rose 0.4% month-on-month, compared with expectations for a 0.3% increase and a 0.1% decline in July.
On an annual basis, CPI rose 0.8%, matching forecasts and accelerating from 0.5% in July.

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The producer price index (PPI) rose 3.8% year-on-year, above expectations for a 3.6% increase and July’s 3.5% rise.
The data suggest China’s prolonged period of weak price pressures is continuing to ease, although the recovery in domestic demand remains uneven.
China’s economy has continued to rely heavily on exports to support growth as domestic consumption and investment remain subdued. August exports jumped 25% from a year earlier, while imports rose 28.2%, according to customs data released on Tuesday.
Policymakers have set a 2026 growth target of 4.5%-5%, but economic momentum slowed to 4.3% in the second quarter.
The firmer inflation readings could reduce pressure for immediate aggressive monetary easing, while giving policymakers more room to assess the impact of existing fiscal and monetary measures