Beijing: China experienced its fastest rise in the producer price index (PPI) as concerns over energy costs continue due to Middle East tensions related to the energy shock from the US and Israel’s conflict with Iran. Rising oil costs have exacerbated existing inflation concerns across major economies such as the US, Europe, and Japan, and have contributed to shifting price dynamics in China, where deflationary trends had been prominent.

According to Anadolu Agency, China’s PPI climbed 2.8% year over year in April, as reported by the National Bureau of Statistics (NBS). This significant increase follows a 0.5% rise in March, marking the first positive change after a 41-month decline that began in the fourth quarter of 2022. The PPI had previously fallen 3% in 2023, 2.2% in 2024, and 2.6% in 2025, with additional decreases of 1.4% and 0.9% in January and February of the current year, respectively.

Arjen van Dijkhuizen, a senior economist at the Dutch bank ABN AMRO, noted to Anadolu that China’s consumer inflation in April gained momentum amid rising energy prices. However, he pointed out that inflation remains weak due to domestic demand imbalances. He emphasized that the conflict with Iran is prominently reflected in the recent spike in producer price inflation, reaching a post-pandemic high.

Lynn Song, chief Greater China economist at ING Group, informed Anadolu that the persistent cost pressures are likely to lead to broader inflation across China’s economy. While acknowledging the immediate negative impacts of rising prices, Song highlighted that in the longer term, these developments could be beneficial as China transitions from deflationary pressures. He suggested that restoring healthy inflation expectations might stimulate increased investment and consumption in the coming years.