FX.co ★ China Inflation Rate Slightly Below Estimates

China’s annual inflation rate inched up to 0.9% in September 2026 from 0.8% in August, coming in just below market expectations of 1%. This was the highest rate since June, driven primarily by faster non-food inflation (1.5% vs 1.2% in August). The main contributor was a sharper rise in transport costs (4.3% vs 2.5%), reflecting higher fuel prices and stronger travel demand ahead of the Golden Week holidays.

Additional upward pressure came from clothing (1.2% vs 1.3%), healthcare (2.7% vs 2.7%), and education (1.4% vs 1.4%). By contrast, housing costs remained weak, registering a decline of 0.3% for the second consecutive month (-0.3% vs -0.3%).

Food prices fell for the sixth consecutive month (-1.7% vs -1.4%), led by a further drop in pork prices, as abundant supply and subdued consumption continued to drag on the market.

On a monthly basis, consumer prices increased 0.2%, undershooting forecasts of a 0.3% rise and easing from August’s 0.4% gain, which had been the strongest monthly increase since February.