China's PPI up 0.5 pct in March

China's producer price index (PPI), which measures costs for goods at the factory gate, returned to year-on-year growth in March 2026, ending a 41-month streak of decline, the National Bureau of Statistics (NBS) said Friday.

The PPI went up 0.5 percent year on year in March, reversing a 0.9 percent drop in February, according to the NBS.

NBS statisticians attributed the turnaround mainly to imported inflationary pressures and improved supply-demand dynamics in some domestic industries.

The price of nonferrous metal mining and dressing industry increased by 36.4 percent year-on-year in March, while the price of nonferrous metal smelting and pressing industry rose by 22.4 percent.

The price of petroleum and natural gas extraction industry increased by 5.2 percent. In contrast, the prices of petroleum, coal, and other fuel processing industry, as well as chemical raw materials and chemical products manufacturing industry, declined by 4.5 percent and 0.3 percent, respectively.

In March, the prices of photovoltaic equipment and components manufacturing, as well as lithium-ion battery manufacturing, increased by 5.2 percent and 2.5 percent, respectively.

With the accelerated expansion of "AI Plus" initiative and rapid growth in demand for computing power, the price of fiber optic manufacturing rose by 76.1 percent.

On a monthly basis, the PPI increased by one percent in March, marking the sixth consecutive month of growth. The growth rate expanded by 0.6 percentage points compared to the previous month, representing the largest increase in 48 months.

The price of petroleum and natural gas extraction industry increased by 15.8 percent month-on-month in March, while the price of petroleum, coal, and other fuel processing industry rose by 5.8 percent.

The price of chemical raw materials and chemical products manufacturing industry increased by 3.6 percent on a monthly basis.

China's PPI up 0.5 pct in March

China's PPI up 0.5 pct in March

Chinese Premier Li Qiang emphasized advancing agricultural modernization and ensuring food security when making investigation in northeast China's Heilongjiang and Jilin provinces from Monday to Wednesday.

In Heilongjiang Province, Li, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, visited a state farm and observed the growth of soybean, corn, and rice crops. He stressed that autumn grain accounts for the bulk of annual output, calling for stepped-up farmland management and policy support to ensure grain harvest.

Visiting an agricultural science park and a rice research institute, Li asked about seed breeding innovation and black soil conservation, highlighting the importance of science and technology in pursuing higher yields and calling for further efforts in seed breeding, advanced machinery, and smart farming.

At a major water conservancy project, Li reviewed construction progress, urging faster completion to improve flood control, irrigation, and ecological benefits while supporting stable, high-yield harvests.

In Jilin Province, Li visited an agricultural cooperative and learned about its operations. He called for developing diverse forms of appropriately scaled agricultural operations and improving services for agriculture to help smallholders connect with modern agriculture.

At a grain processing plant, Li inspected a corn oil production line and called for boosting intensive processing of agricultural products to extend industrial chains and raise value.

Li also visited the Chagan Lake and learned about the ecological fisheries. He called for actively developing modern eco-aquaculture, promoting integrated development of the farming, forestry, livestock, and fishing industries as well as the development of eco-tourism.

Chinese premier stresses agricultural modernization, food security