Middle East conflict pushes China’s PPI back into positive territory for the first time in more than three years (Business Brief No.4258 Full Ed.)

•    China’s Producer Price Index (PPI) for March 2026 grew by 0.5 percent YoY. This reversal was driven by rising commodity prices, such as oil, fueled by the Middle East conflict.
•    Meanwhile, China’s Consumer Price Index (CPI) for March 2026 slowed to 1.0 percent YoY from 1.3 percent YoY.
•    Looking ahead, the impact of the Middle East conflict may continue to drive production costs higher, pushing the PPI upward.
•    At the same time, the impact on the CPI is expected to be limited, as the mechanism for passing higher oil prices on to consumers is strictly controlled by the Chinese government.