According to data released by the National Bureau of Statistics on August 9, the national producer price index (PPI)—measuring factory-gate prices—rose 3.5% year-on-year and fell 0.7% month-on-month in July. Producer purchase prices rose 5.5% year-on-year and fell 1.0% month-on-month.

In July, factory-gate prices in the chemical raw material and chemical product manufacturing industry rose 9.1% year-on-year but fell 2.6% month-on-month; prices in the petroleum, coal, and other fuel processing industry rose 8.2% year-on-year but fell 6.0% month-on-month; and purchase prices for chemical raw materials rose 9.3% year-on-year but fell 2.6% month-on-month.

On a month-on-month basis, the national PPI fell by 0.7%, with the rate of decline widening by 0.4 percentage points compared to the previous month. The main characteristics of the month-on-month PPI movement were as follows: First, imported factors drove down prices in related domestic industries. Prices in petroleum extraction, refined petroleum product manufacturing, and organic chemical raw material manufacturing fell by 11.8%, 8.4%, and 4.2%, respectively; prices in non-ferrous metal mining and dressing, as well as non-ferrous metal smelting and rolling processing, fell by 2.1% and 1.7%, respectively. Together, these five industries contributed to a decline of approximately 0.65 percentage points in the month-on-month PPI. Second, seasonal factors caused price drops in certain industries. July saw frequent high temperatures, rainfall, and typhoons, slowing the pace of construction projects; consequently, prices in ferrous metal smelting and rolling processing and in non-metallic mineral product manufacturing fell by 0.8% and 0.5%, respectively. Meanwhile, increased hydroelectric and wind power generation led to price drops of 10.3% and 3.9% in those sectors; these four industries collectively contributed to a decline of approximately 0.11 percentage points in the month-on-month PPI. Third, industrial transformation and upgrading, along with the improvement and expansion of consumption, drove increased demand and rising prices in certain sectors. New growth drivers expanded, with sectors such as artificial intelligence, high-end equipment, and new materials flourishing; prices for intelligent unmanned aerial vehicle manufacturing, carbon-based new materials, and shipbuilding and related equipment manufacturing rose by 2.5%, 0.4%, and 0.3%, respectively. Quality-oriented consumption grew rapidly, with prices for smart home devices and skincare cosmetics rising by 3.4% and 0.7%, respectively. In year-on-year terms, the national Producer Price Index (PPI) rose by 3.5%, with the growth rate narrowing by 0.6 percentage points compared to the previous month. By sector, among industries experiencing price increases, the oil and natural gas extraction industry, the processing of petroleum, coal and other fuels industry, and the manufacture of chemical raw materials and chemical products saw increases of 3.2%, 8.2%, and 9.1%, respectively; the mining and processing of non-ferrous metal ores and the smelting and pressing of non-ferrous metals rose by 22.6% and 20.2%, respectively; and the smelting and pressing of ferrous metals rose by 2.7%. The growth rates for all these sectors slowed compared to the previous month, and collectively, these six industries contributed approximately 2.55 percentage points to the year-on-year PPI increase. Meanwhile, the coal mining and washing industry rose by 27.1%, the manufacture of electrical machinery and equipment by 5.7%, and the manufacture of computers, communication equipment, and other electronic equipment by 4.4%; the growth rates for these three sectors accelerated compared to the previous month, collectively contributing approximately 1.53 percentage points to the year-on-year PPI increase. The combined upward pull of these nine industries on the PPI decreased by 0.56 percentage points compared to the previous month. The five industries exerting the greatest downward pressure on prices were the production and supply of electric power and heat, the manufacture of automobiles, the manufacture of non-metallic mineral products, the manufacture of medicines, and the manufacture of wines, beverages, and refined tea; price declines in these sectors ranged from 2.3% to 5.7%, collectively pulling the PPI down by approximately 0.76 percentage points—a reduction of 0.05 percentage points in the downward impact compared to the previous month.

For the January–July period, producer prices for industrial products rose by an average of 1.8% year-on-year, while purchase prices for industrial producers rose by 2.8%. Specifically, factory-gate prices in the manufacture of chemical raw materials and chemical products rose by 4.6% year-on-year, and those in the processing of petroleum, coal, and other fuels rose by 3.8%; purchase prices for chemical raw materials rose by 3.6% year-on-year.

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