The producer price increase extends a streak of rising factory-gate prices after years of deflation, with implications for global commodity markets and manufacturing costs. China’s producer price index rose 3.5% year over year in July, according to the National Bureau of Statistics. The figure marks another month of factory-gate price increases in the world’s second-largest economy. The reading follows June’s 4.1% year-over-year PPI increase, which was the steepest since July 2022. AdvertisementFrom deflation to accelerationChina’s factory-gate prices spent 41 consecutive months in decline before turning positive in March 2026 with a modest 0.5% year-over-year increase.