Pedestrians walk past a flagship store of Huawei Technologies Co. in Shenzhen, China, Wednesday, October 8, 2025.
Qilai Shen | Bloomberg | Getty Images
Consumer prices in China fell more than expected in September, while producer price deflation persisted, underscoring the impact of weak domestic demand and trade concerns on consumer and business confidence.
The consumer price index fell 0.3% in September from a year earlier, data from the National Bureau of Statistics showed on Wednesday, a steeper drop than economists’ forecast of a 0.2% decline. Prices rose 0.1% month over month, a more modest recovery than expected compared with economists’ forecasts of a 0.2% improvement.
The core CPI, which excludes volatile food and energy prices, rose 1.0% year-over-year, the highest since February 2024, according to Wind Information data.
China’s producer price index fell 2.3 percent from last year, in line with economists’ forecasts, official data showed. Deflation, however, eased for a second month, with prices falling from 2.9% in August to 3.6% in July.
Falling producer prices have persisted for nearly three years, hurting the profitability of manufacturers who have faced lukewarm consumer confidence and production disruptions resulting from U.S. trade policy.
Weak consumer demand has weighed on China’s economy, which is grappling with a prolonged slowdown in the real estate sector, while U.S. tariffs weigh on exports.
This is breaking news. Please refresh for updates.
