AI Data Insight
The latest data shows that the monthly value of China's means of production PPI for Q2 2026 climbed to 103.8 (i.e., a YoY increase of 3.8%), marking a significant expansion compared to the previous quarter's 101.0 (a YoY increase of 1.0%). This strong rebound mainly reflects the recovery of upstream industrial and raw material prices, suggesting that deflationary pressure on the production end has significantly eased. However, it remains to be seen whether terminal demand can keep pace in the future to prevent companies from facing the risk of a cost squeeze.