China's annual inflation rate increased to 0.9% in September 2026, up from 0.8% in August, marking the highest figure since June. This rate is also below market expectations of 1%.
Increase in Non-Food Prices
The rise in the inflation rate is particularly driven by a surge in non-food prices, which reached 1.5% in September, while this figure was 1.2% in August. Transportation costs grew by 4.3% compared to 2.5% in August, especially influenced by rising fuel prices and travel demand ahead of the Golden Week holiday.
Price Situation in Various Sectors
Higher price pressures are also seen from clothing (1.2% compared to 1.3% in August), healthcare services (2.7% versus 2.7%), and education (1.4% versus 1.4%). In contrast, housing costs remain at a lower level with no significant change, staying at a rate of -0.3%.
In the food sector, prices have decreased for the sixth consecutive month, reaching -1.7%, due to further declines in pork prices. An oversupply of pork and reduced consumption have impacted prices.
On a monthly basis, consumer prices increased by 0.2%, which is less than the expected 0.3% and a decrease from the 0.4% increase in August. This increase is the strongest monthly rise since February.
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