The food component of China's August 2026 CPI was down 1.4% year-over-year while the nonfood component was up 1.2%. The overall CPI was up 0.8% y-o-y and up 0.4% from the previous month.
China's Producer Price Index, likewise showed a 3.8% increase overall, but the PPI for agricultural processing was down 1.7%, the PPI for food manufacturing was down 1.2%, and the PPI for alcohol and beverages was down 5.3% year-over-year in August.
A commentary by a National Bureau of Statistics statistician noted that fluctuations in international prices and a seasonal change in food prices had reversed July's -0.1% drop in the overall CPI to a 0.4% monthly rise in August. Gasoline, gold jewelry, and computers, tablets, and storage devices contributed upward pressure on consumer prices. The commentary noted a 5.5% monthly rise in vegetable prices attributed to hot weather, heavy rains, and seasonal rotations. Monthly recoveries of egg and pork prices were attributed to a seasonal slump in layer hen productivity and reduced marketings of hogs in August. Increased seasonal supplies reduced fruit prices, and the end of a fishing ban in some regions increased fish supplies, reducing fish prices. The year-over-year decline in pork prices accounted for -0.22 percentage points to partially offset the y-o-y increase in the CPI for nonfood categories.
Early indica rice prices are below year-earlier levels. Authorities have been buying indica rice at the minimum price in Jiangxi Province.
In contrast, Chinese soybean prices are up from a year ago. The recent rise in international soybean prices has been putting upward pressure on prices and there are concerns about the impact on China's domestic soybean harvest of flooding and hot weather in the main production region. Soybean meal prices are also rising under pressure from rising international soybean prices.
China's consumer prices were down year over year for most sub-categories of food, led by pork which was down 11.8%. Grains, edible oils, vegetables, and fish prices were all down from a year ago. Beef and mutton prices were up 5.3% and 6.3%, respectively, from a year ago. Egg prices were depressed last year, but they have rebounded sharply this year. August egg prices were up 15% from a year ago.
A commentary by a National Bureau of Statistics statistician noted that fluctuations in international prices and a seasonal change in food prices had reversed July's -0.1% drop in the overall CPI to a 0.4% monthly rise in August. Gasoline, gold jewelry, and computers, tablets, and storage devices contributed upward pressure on consumer prices. The commentary noted a 5.5% monthly rise in vegetable prices attributed to hot weather, heavy rains, and seasonal rotations. Monthly recoveries of egg and pork prices were attributed to a seasonal slump in layer hen productivity and reduced marketings of hogs in August. Increased seasonal supplies reduced fruit prices, and the end of a fishing ban in some regions increased fish supplies, reducing fish prices. The year-over-year decline in pork prices accounted for -0.22 percentage points to partially offset the y-o-y increase in the CPI for nonfood categories.
The main factors contributing to the rise in producer prices were increasing international prices of petroleum and nonferrous metals, according to the NBS commentary.
According to data from China's Administration of Food and Commodity Reserves, wheat prices are near the minimum price as the main marketing season for wheat closes out. Wheat prices are very close to last year's level. Rising wheat prices in the international market with the disruption of Black Sea shipments had no discernable impact on cash wheat prices in China last month. At least one Chinese propaganda commentary has bragged about the insulation of China's grain market from the current rise in prices, but Chinese farmers may be less enthusiastic.
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| China Administration of Food and Commodity Reserves. |
Spot prices for corn quoted by the commodity reserves administration are also at nearly an identical level as a year ago as the corn harvest approaches. Corn prices dropped during the harvest in 2025 and 2024.
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| China Administration of Food and Commodity Reserves. |
Early indica rice prices are below year-earlier levels. Authorities have been buying indica rice at the minimum price in Jiangxi Province.
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| China Administration of Food and Commodity Reserves. |
In contrast, Chinese soybean prices are up from a year ago. The recent rise in international soybean prices has been putting upward pressure on prices and there are concerns about the impact on China's domestic soybean harvest of flooding and hot weather in the main production region. Soybean meal prices are also rising under pressure from rising international soybean prices.
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| China Administration of Food and Commodity Reserves. |
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