China's consumer price index (CPI) rose 0.4% month on month in August 2026, reversing a 0.1% decline in July, while the year-on-year increase widened to 0.8%, driven by international price movements and seasonal food price gains, the National Bureau of Statistics said.

Core CPI, excluding food and energy prices, rose 1.0% year on year, up from the previous month. The producer price index (PPI) rose 0.4% month on month in August, reversing a 0.7% decline in July, with the year-on-year gain expanding to 3.8%, reflecting upward transmission from international commodity prices and rising demand in some industries amid industrial upgrading.

On a monthly basis, domestic gasoline prices swung from a 10.7% decline in July to a 7.2% rise in August, contributing about 0.21 percentage points to the CPI increase, while gold jewelry prices rose 7.6% after falling 2.6% the prior month, adding about 0.04 percentage points. Mobile phones, tablet computers and data storage equipment prices rose 2.3%, 2.1% and 2.1% respectively, together contributing about 0.03 percentage points to CPI growth.

Food prices turned to a 0.4% monthly increase from flat in July, contributing about 0.07 percentage points. Fresh vegetable prices rose 5.5%, expanding 4.2 percentage points from July amid hot and rainy weather and seasonal crop rotation. Egg prices rose 2.4% after falling 2.1% in July, and pork prices gained 1.3%, with the three items together contributing about 0.12 percentage points to the monthly CPI rise.

Fresh fruit prices fell 2.5% on ample seasonal supply, and aquatic product prices dropped 0.9% as supply increased after the fishing moratorium ended in some sea areas, together dragging CPI down by about 0.07 percentage points.

Service prices rose 0.1% month on month, slowing 0.3 percentage points from July, contributing about 0.04 percentage points. During the summer holiday period, vehicle rental, airfare and hotel accommodation prices rose 3.3%, 3.0% and 1.0% respectively.

Year on year, the national CPI rose 0.8% in August, expanding 0.3 percentage points from July, mainly driven by a wider increase in energy prices.

Energy price gains widened to 4.1% from 0.6% in July, contributing about 0.28 percentage points to the annual CPI increase, about 0.24 percentage points more than the prior month's contribution. Gasoline prices rose 9.3%, with the gain expanding 8.3 percentage points.

Industrial consumer goods excluding energy rose 1.8%, expanding 0.3 percentage points and contributing about 0.42 percentage points to the annual CPI increase. Gold jewelry prices surged 33.6%, with the gain widening 9.0 percentage points, while tablet, computer and mobile phone prices rose 21.5%, 19.6% and 11.0% respectively.

Service prices rose 0.8% year on year, expanding 0.1 percentage points from July, contributing about 0.38 percentage points. Transport service prices rose 1.3%, with the gain expanding 1.2 percentage points, while medical service prices rose 4.0%, slowing 0.3 percentage points.

Food prices fell 1.4%, with the decline narrowing 0.1 percentage points from July, dragging the annual CPI down by about 0.24 percentage points.

Pork prices dropped 11.8%, with the decline narrowing 1.5 percentage points, dragging CPI down by about 0.22 percentage points. Fresh vegetables, fresh fruit, grain, cooking oil, aquatic products and dairy prices fell between 0.5% and 2.8%, together dragging CPI down by about 0.10 percentage points.

Egg prices rose 18.5%, with the gain expanding 0.7 percentage points, contributing about 0.07 percentage points, while mutton, beef and poultry meat prices rose between 1.1% and 6.3%, together contributing about 0.07 percentage points.

On a monthly basis, the national PPI rose 0.4% in August, reversing a 0.7% decline in July. Imported cost pressures drove price gains in domestic related industries, with international crude oil and nonferrous metal price increases lifting prices in oil extraction, refined petroleum product manufacturing and organic chemical raw material manufacturing by 10.4%, 4.1% and 0.9% respectively, while nonferrous metal smelting and rolling prices rose 0.8%, with the four sectors together contributing about 0.31 percentage points to the monthly PPI increase.

Industrial upgrading boosted demand and prices in some sectors. Electronic circuit manufacturing prices rose 3.5%, virtual reality equipment manufacturing prices gained 1.9%, and service-consumption robot manufacturing prices rose 0.3%, while biomass fuel processing and waste resource comprehensive utilization prices each rose 0.3%.

Seasonal factors also played a role, with August's seasonal increase in electricity and coal demand lifting coal mining and washing prices by 2.8% and power supply prices by 1.4%. Hot and rainy weather affected construction activity, with ferrous metal smelting and rolling prices falling 0.9% and non-metallic mineral products prices down 0.2%.

Year on year, the national PPI rose 3.8% in August, expanding 0.3 percentage points from July. Among major industries, coal mining and washing prices surged 26.6%, nonferrous metal smelting and rolling prices rose 20.8%, oil and gas extraction, petroleum coal and other fuel processing, and chemical raw material and chemical product manufacturing prices rose 10.5%, 11.1% and 9.1% respectively, electrical machinery and equipment manufacturing prices gained 5.9%, and computer, communication and other electronic equipment manufacturing prices rose 5.3%, with the seven sectors together contributing about 4.24 percentage points to the annual PPI increase, 0.37 percentage points more than in July.

The six industries with the largest downward drag were electricity and heat production and supply, automobile manufacturing, non-metallic mineral products, pharmaceutical manufacturing, alcohol beverage and refined tea manufacturing, and agricultural and sideline food processing, with declines ranging from 1.7% to 5.3%, together dragging the annual PPI down by about 0.74 percentage points.