China's PPI returns to growth in March, ending 41-month decline

A staff member inspects the motorcycles for export at the factory building of ZXMOTO in Liangjiang New Area, southwest China's Chongqing, April 1, 2026. [Photo/Xinhua]

China's producer price index (PPI), which measures costs for goods at the factory gate, returned to year-on-year growth in March, ending a 41-month streak of decline, the National Bureau of Statistics (NBS) said Friday.

The PPI rose 0.5 percent year on year in March, reversing a 0.9 percent drop in February, according to the NBS.

NBS statistician Dong Lijuan attributed the turnaround mainly to imported inflationary pressures and improved supply-demand dynamics in some domestic industries.

Globally elevated prices for commodities like crude oil and non-ferrous metals drove up costs in related sectors at home. In March, the purchasing prices for non-ferrous metal mining and dressing surged 36.4 percent year on year, while prices for the smelting and pressing of non-ferrous metals jumped 22.4 percent, with the growth rates expanding by 6.2 and 0.3 percentage points from February, respectively.

The oil and natural gas extraction industry saw its price rise 5.2 percent year on year in March, shifting from a 12.9 percent decline in February.

Domestically, prices in some industries climbed due to improved supply-demand balance and industrial upgrading. Prices for photovoltaic equipment and components, and lithium-ion battery manufacturing increased by 5.2 percent and 2.5 percent, respectively, amid continued market optimization.

The fast expansion of new growth drivers also played a role. Prices for optical fiber manufacturing soared 76.1 percent year on year. Prices for external storage equipment and components, and electronic specialty materials manufacturing rose 21.1 percent and 18.7 percent, respectively.

Green transition efforts contributed as well, with prices for biomass fuel processing and waste resource comprehensive utilization up 6.1 percent and 0.9 percent.

On a monthly basis, the PPI rose 1 percent in March, marking the sixth consecutive month of increase. The growth rate accelerated by 0.6 percentage points from February, representing the largest monthly increase in 48 months.

The faster monthly growth was primarily driven by a sharp rise in prices for domestic petroleum-related industries, influenced by significant increases in international crude oil prices, Dong said.

The oil and natural gas extraction industry saw its price surge 15.8 percent month on month.

Following the Chinese New Year holiday, the gradual resumption of work at industrial enterprises and construction projects boosted demand for energy and steel. Consequently, prices for the production and supply of electric power and heat power shifted from a 3.9 percent decline in February to a 1.4 percent increase in March.

China's consumer price index (CPI), a main gauge of inflation, rose 1 percent year on year in March, official data showed Friday.

The core CPI, which excludes food and energy prices, increased 1.1 percent year on year, according to the NBS data.

On a month-on-month basis, CPI fell 0.7 percent in March, the data revealed.