China Sees Price Increases in April as Global Energy Shock from War on Mideast

(MENAFN) China recorded continued increases in both producer and consumer prices in April, driven by rising global energy and raw material costs linked to the ongoing conflict in the Middle East, according to official statistics.

The National Bureau of Statistics (NBS) reported that the producer price index rose by 2.8% year-on-year in April, marking a stronger upward trend compared to the previous month as global commodity pressures intensified.

Authorities noted that the impact of higher international energy and raw material prices on factory-gate inflation became more evident in April than in March. The producer price index had previously ended a prolonged decline in March, when it registered its first increase after 41 consecutive months of contraction beginning in late 2022.

Over the past years, the index has shown sustained weakness, falling 3% in 2023, 2.2% in 2024, and 2.6% in 2025, while continuing to decline earlier this year before reversing in March.

On the consumer side, China’s inflation rate rose by 1.2% in April compared to the same period last year, reflecting modest upward pressure on retail prices.

Consumer inflation had already shown fluctuations in recent months, rising to 1.3% in February before easing slightly in March. Prior to that, price levels had remained largely stagnant for an extended period.

Since 2023, China has experienced prolonged price stability, with minimal inflation growth recorded over multiple years. In response to persistent weakness, authorities reduced the country’s inflation target from 3% to 2% last year.

The latest figures suggest that external cost pressures, particularly from global energy markets affected by geopolitical tensions, are beginning to filter through China’s domestic economy.

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