10.09.202501:30:00UTC+00China's Producer Price Index Shows Signs of Recovery in August 2025

In an encouraging turn for the Chinese economy, the Producer Price Index (PPI) showed signs of recovery, with the rate improving to -2.9% year-over-year in August 2025, according to the latest data updated as of September 10, 2025. This marks a rise from the previous month's figure of -3.6% in July.

The PPI, a critical gauge measuring the average change over time in the selling prices received by domestic producers for their output, indicates potential stabilization in China's manufacturing and industrial sectors. The better-than-expected improvement from July’s figures suggests a slowing deflationary trend, a positive sign for investors and policymakers amid global economic uncertainties.

While the index remains in negative territory, the narrowing of the negative percentage points suggests that measures taken by the government to stimulate the economy, including easing of monetary policies and targeted fiscal interventions, might be taking effect. As the worldwide economic landscape continues to evolve, China’s incremental recovery in its PPI could serve as a catalyst for further economic growth and stability in the region.