Core Viewpoint - In August 2025, the national industrial producer price index (PPI) decreased by 2.9% year-on-year, with the decline narrowing by 0.7 percentage points compared to the previous month, and month-on-month changes shifted from a decrease of 0.2% to flat [1] Group 1: Producer Prices - The industrial producer ex-factory prices for the first eight months of the year averaged a 2.9% decrease compared to the same period last year [1] - The industrial producer purchase prices decreased by 4.0% year-on-year, remaining flat month-on-month [1] Group 2: Price Breakdown - In August, the prices of production materials fell by 3.2%, contributing approximately 2.40 percentage points to the overall decline in industrial producer ex-factory prices [1] - The mining industry saw a significant price drop of 11.5%, while raw materials and processing industries experienced declines of 4.1% and 2.2%, respectively [1] - Prices of living materials decreased by 1.7%, impacting the overall industrial producer ex-factory prices by about 0.45 percentage points [1] - Food prices decreased by 1.7%, clothing prices remained stable, general daily goods prices increased by 0.4%, and durable consumer goods prices fell by 3.7% [1]

Core Insights - In July, the Producer Price Index (PPI) in Liaoning decreased by 5.8% year-on-year, with the decline widening by 0.2 percentage points compared to the previous month [1] - Month-on-month, the PPI shifted from flat in the previous month to an increase of 0.3% [1] - The Industrial Producer Price Index (IPI) saw a year-on-year decline of 6.8%, with the drop also widening by 0.1 percentage points from the previous month [1] - Cumulatively from January to July, the PPI decreased by 4.8% year-on-year, while the IPI fell by 5.0% [1] Price Trends - In July, the prices of production materials decreased by 5.0% year-on-year, with specific declines in various sectors: mining industry down 10.7%, raw materials industry down 5.8%, and processing industry down 3.7% [1] - The prices of living materials dropped by 9.5% year-on-year, with durable consumer goods down 15.1%, food down 5.5%, general daily necessities down 2.2%, and clothing slightly up by 0.1% [1] Raw Material Price Movements - Among nine major raw material categories, the price trend showed "two increases and seven decreases" year-on-year [1] - Textile raw materials increased by 1.7%, and non-ferrous metal materials and wires rose by 1.4% [1] - Conversely, building materials and non-metallic materials decreased by 0.9%, wood and pulp by 1.0%, other industrial raw materials and semi-finished products by 1.1%, chemical raw materials by 7.9%, black metal materials by 8.7%, agricultural and sideline products by 9.9%, and fuel and power by 12.8% [1]

Core Insights - In July 2025, the Producer Price Index (PPI) in Liaoning decreased by 5.8% year-on-year, with the decline widening by 0.2 percentage points compared to the previous month [1] - The Industrial Producer Price Index (IPI) also saw a year-on-year decrease of 6.8%, with a slight month-on-month decline of 0.2%, which is a narrowing of the previous month's decline by 0.7 percentage points [1] Price Trends - The prices of production materials decreased by 5.0% year-on-year in July, with the mining industry down by 10.7%, raw materials down by 5.8%, and processing industry down by 3.7% [1] - Consumer goods prices fell by 9.5% year-on-year, with durable goods down by 15.1%, food down by 5.5%, general daily necessities down by 2.2%, while clothing saw a slight increase of 0.1% [1] Raw Material Price Movements - In July, the prices of nine major raw materials showed a mixed trend with two categories increasing and seven decreasing [1] - Textile raw materials increased by 1.7%, and non-ferrous metals and wire materials increased by 1.4% [1] - Conversely, building materials and non-metallic materials decreased by 0.9%, wood and pulp decreased by 1.0%, other industrial raw materials and semi-finished products decreased by 1.1%, chemical raw materials decreased by 7.9%, black metal materials decreased by 8.7%, agricultural and sideline products decreased by 9.9%, and fuel and power decreased by 12.8% [1]

Core Insights - In July 2025, the national industrial producer's ex-factory prices decreased by 0.2% month-on-month, while the purchasing prices fell by 0.3%, with the decline rates narrowing by 0.2 and 0.4 percentage points compared to the previous month [1] - Year-on-year, the industrial producer's ex-factory prices dropped by 3.6%, and the purchasing prices decreased by 4.5% [1] - From January to July, the average ex-factory prices of industrial producers fell by 2.9% compared to the same period last year, while the purchasing prices declined by 3.2% [1]

Inflation Trends - In February, China's Consumer Price Index (CPI) decreased by 0.7% year-on-year, against a market expectation of a 0.4% decline, following a 0.5% increase in January[1] - The average CPI for January-February showed a slight decline of 0.1% compared to the same period last year, while December's CPI had a 0.1% increase[5] - Food prices fell by 1.3% year-on-year in January-February, compared to a 0.5% decline in December[5] Core CPI and PPI Analysis - The core CPI for January-February increased by 0.3% year-on-year, slightly down from a 0.4% increase in December[5] - The Producer Price Index (PPI) in February dropped by 2.2% year-on-year, slightly worse than the expected 2.1% decline and an improvement from a 2.3% drop in the previous month[9] - The prices of production materials decreased by 2.5% year-on-year, contributing approximately 1.86 percentage points to the overall PPI decline[9] Price Movements and Policy Implications - February's PPI saw a month-on-month decrease of 0.1%, following a 0.2% decline in January[10] - The government has set a CPI growth target of around 2% for 2025, down from 3% in 2024, indicating a shift in monetary policy focus[13] - The report emphasizes the importance of maintaining liquidity and aligning monetary supply growth with economic growth and price expectations[13]