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China’s producer prices fell 1.9% year-on-year in December 2025, easing from a 2.2% decline in November and extending the contraction to a 39th consecutive month. The latest reading was slightly above market expectations of a 2.0% drop, marking the mildest decline since August 2024, reflecting Beijing’s continued efforts to rein in excessive price competition. Consumer goods prices dropped a bit slower (-1.3% vs -1.5% in November), driven by milder falls in durable goods (-3.5% vs -3.6%) and clothing (-0.1% vs -0.3%), while food prices remained weak (-1.5% vs -1.5%). In contrast, costs of daily-use goods rose slightly faster (1.4% vs 1.1%). At the same time, production material prices fell more slowly (-2.1% vs -2.4%), with decreases softening in mining (-4.7% vs -6.1%), raw materials (-2.6% vs -2.9%), and processing (-1.6% vs -1.9%). For the full year of 2025, producer prices shrank 2.6%. Monthly, the PPI rose 0.2% in December, after edging up 0.1% in the previous two months.