China’s producer prices fell 2.2% year-on-year in November 2025, slightly accelerating from a 2.1% decline in October and marking the 38th consecutive month of contraction. The result came in slightly worse than market expectations of a 2.0% decline, reflecting ongoing price competition and persistently weak domestic demand. Consumer goods prices declined at a faster pace in November (-1.5% vs -1.4% in October), driven by steeper falls in durable goods (-3.6% vs -3.2%), while food (-1.5% vs -1.6%) and clothing (-0.3% vs -0.3%) continued to drop modestly. In contrast, costs of daily-use goods rose slightly faster (1.1% vs 1.0%). Meanwhile, production material prices remained weak (-2.4% vs -2.4%), with persistent declines in mining (-6.1% vs -7.8%), raw materials (-2.9% vs -2.5%), and processing (-1.9% vs -1.9%). During the first eleven months of the year, producer prices shrank 2.7%. Monthly, the PPI inched up 0.1%, the same pace as in October.