China’s producer prices fell 0.9% year-on-year in February 2026, easing from a 1.4% decline in the previous month and better than market expectations of a 1.1% drop. This marked the softest producer deflation since July 2024, reflecting Beijing’s ongoing efforts to curb excessive price competition. Prices for production materials fell at a slower pace (-0.7% vs -1.3% in January), with deflation easing for raw materials (-1.9% vs -2.0%) and intermediate goods (-5.3% vs -8.1%), while prices rebounded for processed goods (0.3% vs -0.4%). Consumer goods prices also declined more gradually (-1.6% vs -1.7%), particularly for clothing (-1.0% vs -0.7%), food (-1.8% vs -1.9%), and durable goods (-1.6% vs -1.8%), while deflation for daily-use items remained steady at 1.8%. On a monthly basis, producer prices stood at 0.4%, unchanged from January.