China's factory-gate prices see narrower decline in January

China saw signs of improvement in factory-gate prices in January 2026, with the decline in its producer price index (PPI) continuing to narrow, official data showed Wednesday.

The PPI, which measures costs for goods at the factory gate, went down 1.4 percent year on year in January, narrowing by 0.5 percentage points compared to the previous month, the National Bureau of Statistics (NBS) said.

On a monthly basis, the PPI rose 0.4 percent in January, 0.2 percentage points higher than the increase recorded in December, according to the NBS data.

The National Bureau of Statistics attributed this improvement to steady progress in building a unified national market, rising demand in some sectors, and price transmission from international commodity markets.

The data comes at a time when the Chinese government is intensifying efforts to boost domestic demand.

Last month, China unveiled a comprehensive policy package, leveraging fiscal and financial synergy to boost consumption and energize private investment.

The National Development and Reform Commission (NDRC), the country's top economic planner, also pledged to formulate a strategic implementation plan for expanding domestic demand for the 2026-2030 period.

The NDRC said the plan aims to adapt to consumption upgrades and technological shifts, fostering a virtuous cycle where "new demand steers new supply and new supply creates new demand" through robust innovation support.

""As measures to improve supply-demand coordination and curb disorderly competition continue to take effect, prices in some industries have improved. The year-on-year price trend in the electrical machinery and equipment manufacturing industry turned positive after 33 months. Price declines in the ferrous metal smelting and rolling processing industry as well as the non-metallic mineral products industry are also beginning to narrow," said He Xiaoying, deputy director of analysis and forecasting division of the Price Monitoring Center at the NDRC.

China's factory-gate prices see narrower decline in January

Global food commodity prices climbed for a second consecutive month in March, driven mainly by higher energy costs linked to escalating conflict in the Middle East, the Food and Agriculture Organization of the United Nations (FAO) said in report released on Friday.

The FAO Food Price Index, which tracks monthly changes in the international prices of a basket of globally traded food commodities, averaged 128.5 points in March, up 2.4 percent from February and 1.0 percent above its level a year ago.

According to the report, the FAO Vegetable Oil Index and Sugar Price Index showed the largest increases, up 5.1 percent and 7.2 percent, respectively.

The FAO Cereal Price Index increased by 1.5 percent from the previous month, driven primarily by higher world wheat prices, which rose 4.3 percent.

The FAO Meat Price Index rose by 1.0 percent from the previous month, and the FAO All-Rice Price Index declined by 3.0 percent in March, according to the report.

FAO stated that rising energy and fertilizer prices have been driving up agricultural input costs.

If the conflict stretches beyond 40 days, farmers will have to choose to farm the same with fewer inputs, plant less, or switch to less intensive fertilizer crops, according to FAO Chief Economist Maximo Torero.

These choices will hit future yields and shape food supply and commodity prices for the rest of this year and beyond, Torero said.

Global food prices rise for 2nd consecutive month in March amid Middle East conflict: FAO