China's Producer Price Index Declines Beyond Expectations for the 38th Consecutive Month

According to TradingEconomics, China's Producer Price Index (PPI) recorded a 2.2% decrease year-on-year in November 2025, slightly accelerating from a 2.1% decline in October, continuing the index's streak of contraction for the 38th consecutive month. This reading was worse than market expectations of a 2.0% drop, reflecting ongoing pressures from price competition and weak industrial demand.

Consumer goods prices fell at a faster pace of 1.5% compared to 1.4% in October, driven by a larger decline in d durable goods, which dropped 3.6% versus 3.2% the previous month. Food prices continued their moderate decline (-1.5% versus -1.6%) along with clothing prices (-0.3% unchanged). Conversely, prices for everyday goods increased slightly to 1.1% from 1.0%.

Meanwhile, producer goods prices remained weak at -2.4%, unchanged from previous months, with continued declines in:

• Mining sectors (-6.1% versus -7.8%)

• Raw materials (-2.9% versus -2.5%)

• Processing operations (-1.9% unchanged)

During the first eleven months of 2025, producer prices in China contracted by 2.7%. On a monthly basis, the index rose by 0.1%, the same rate of increase recorded in October, indicating a slight improvement but insufficient to break the long-term contraction trend.