China's factory-gate prices just jumped 5.7% year-over-year in October—the fastest pace since mid-2022. That's a sharp reversal from the -3.6% deflation we saw back in June and July.
Three straight months of acceleration. Energy costs are climbing, non-ferrous metals are heating up, and AI hardware demand is pushing production costs higher across the board.
Even more telling: what factories pay for raw materials and inputs surged 7.9% YoY, also the biggest jump since June 2022.
After years of deflationary pressure, inflation is creeping back into the Chinese economy. This matters for global supply chains, commodity markets, and how central banks worldwide think about the inflation story heading into 2026.
Three straight months of acceleration. Energy costs are climbing, non-ferrous metals are heating up, and AI hardware demand is pushing production costs higher across the board.
Even more telling: what factories pay for raw materials and inputs surged 7.9% YoY, also the biggest jump since June 2022.
After years of deflationary pressure, inflation is creeping back into the Chinese economy. This matters for global supply chains, commodity markets, and how central banks worldwide think about the inflation story heading into 2026.