China’s producer prices rose 0.5% year-on-year in March 2026, beating expectations of a 0.4% gain and reversing a 0.9% decline in February. This marked the first increase since September 2022, ending its longest deflationary streak in decades, mainly driven by a sharp rise in global commodity prices, particularly energy, alongside improved supply-demand conditions in certain domestic industries. Prices rebounded for production materials (1.0% vs -0.7% in February), particularly in intermediate goods (2.0% vs -5.3%) and raw materials (1.1% vs -1.9%), while processed goods rose at a faster pace (0.9% vs 0.3%). Consumer goods deflation also eased (-1.3% vs -1.6%), with softer declines in food (-1.7% vs -1.8%), daily-use items (-1.4% vs -1.8%), and durable goods (-1.0% vs -1.6%). Meanwhile, clothing costs continued to drop (-1.1% vs -1.0%). On a monthly basis, producer prices rose 1.0%, the strongest since 2022, following gains of 0.4% in each of the previous two months.