What are the main reasons for China's March PPI year-on-year growth turning positive?

The main reasons are the impact of international imported factors on price increases in related domestic industries and the improvement of supply-demand relations in some domestic industries.

What was the CPI year-on-year growth rate in March?

The CPI year-on-year growth rate in March was 1%, a slight decrease of 0.3 percentage points from February, but it remained above 1% for two consecutive months.

China's March PPI growth rate turns positive for the first time in 41 months

Published Apr 10, 2026 12:04 PM ・ Updated Jun 13, 2026 8:25 AM ・ 4 min read ・ Source: CNA (Central News Agency)

China's Producer Price Index (PPI) rose by 0.5% year-on-year in March, marking the first positive growth in 41 months. This turnaround is attributed to international factors influencing commodity prices and improved supply-demand dynamics in some domestic industries. Meanwhile, the Consumer Price Index (CPI) increased by 1% year-on-year, a slight decrease from February.

The CPI year-on-year growth rate in March was 1%, a decrease of 0.3 percentage points from February, maintaining above "1" for two consecutive months. The PPI year-on-year growth rate in March was 0.5%, an increase of 1.4 percentage points from February. China's PPI year-on-year growth rate has maintained negative growth since October 2022, turning positive for the first time in 41 months. Dong Lijuan, Chief Statistician of the Urban Department of the National Bureau of Statistics of China, analyzed that after the long Lunar New Year holiday, consumer demand showed a seasonal decline. The CPI year-on-year growth rate in March was 1%, a slight decrease from February, and the CPI year-on-year growth rate maintained a moderate upward trend. Dong Lijuan pointed out that the PPI year-on-year growth rate turned positive for the first time in 41 months in March due to the impact of international imported factors on the price increases or narrowing declines in related domestic industries. For example, prices in the non-ferrous metal mining and dressing industry rose by 36.4%; prices in the oil and natural gas extraction industry changed from a 12.9% decline in February to a 5.2% increase, an increase of 18.1 percentage points. Dong Lijuan mentioned that another reason is the improvement of supply and demand relations in some domestic industries, rising prices, and continuous optimization of market competition order. Reuters reported on the 10th that China's March PPI growth rate turned positive for the first time in about three and a half years, a sign of cost pressures caused by the Middle East conflict. Economists warn that if inflation is driven by rising costs rather than increased demand, it could complicate policy decisions, curb economic growth, and limit the scope for stimulus measures. Imported inflation will compress corporate profit margins, and if companies cannot pass on higher costs, it will curb investment and employment opportunities. (Editor: Chen Kaiyu) 1150410

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Source: CNA (Central News Agency)
Category: financial

China's March PPI growth rate turns positive for the first time in 41 months

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