FX.co ★ China’s Factory-Gate Deflation Eases in January as PPI Slide Moderates

China’s producer price deflation continued for another month in January, but the pace of decline eased, suggesting tentative stabilization in factory-gate prices at the start of 2026.

According to data updated on 11 February 2026, China’s Producer Price Index (PPI) fell 1.4% year-over-year in January 2026, compared with a 1.9% year-over-year decline in December 2025. Both figures are based on comparisons with the same month a year earlier.

The narrower drop in PPI indicates that while producer prices remain under pressure, the depth of industrial deflation is lessening. This moderation may be watched closely by markets for signs that cost pressures in China’s industrial sector are bottoming out after a prolonged period of weakness.