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China’s producer prices fell 2.9% yoy in August 2025, slowing from a 3.6% drop in the previous month and marking the mildest decline since April, partly reflecting Beijing’s recent efforts to curb corporate price wars. The latest result was in line with market consensus but extended the streak of factory-gate deflation to 35 months, due to lingering weakness in domestic demand and ongoing trade headwinds. Production material cost shrank at a softer pace (-3.2% vs -4.3% in July), with easing falls in mining (-11.5% vs -14.0%), raw materials (-4.1% vs -5.4%), and processing (-2.2% vs -3.1%) Meanwhile, consumer goods prices remained weak (-1.7% vs -1.6%), weighed by food (-1.7% vs -1.8%) and durable goods (-3.7% vs -3.5%). Prices of clothing were flat after edging lower by 0.1% previously, while cost of daily-use goods eased (0.4% vs 0.6%). In the first seven months of the year, producer prices shrank 2.9%. Monthly, the PPI was flat, after a 0.2% fall in the preceding month.