China continues see increase in prices amid ongoing war in Middle East

In China, the rise in producer and consumer prices continued in April due to the surge in global energy and raw material prices triggered by the war in the Middle East.

The National Bureau of Statistics of China (NBS) reported on Monday that the producer price index rose by 2.8% year-on-year in April.

The impact of the rise in global energy and raw material prices on producer prices became more pronounced in April compared to the previous month.

The index recorded its first increase of 0.5% in March after a 41-month decline that began in the fourth quarter of 2022.

The decline in the producer price index continued for three years following its start in the fourth quarter of 2022.

The index fell by 3% in 2023, 2.2% in 2024, and 2.6% in 2025, while also declining by 1.4% in January and 0.9% in February of this year.

The consumer prices index, which serves as the key indicator of inflation, recorded a 1.2% increase in April compared to the same month last year.

Consumer prices rose by 1.3% year-over-year in February to reach their highest level in three years before increasing by 1% in March.

Chinese consumer prices entered a period of stagnation starting in 2023.

Inflation in the country rose by only 0.2% in both 2023 and 2024 and remained flat in 2025.

The Chinese government lowered its annual inflation target from 3% to 2% last year due to ongoing stagnation.