Food prices decreased by 4.3%, while non-food prices rose by 0.5%. The CPI, which measures inflation and consumption trends, showed a cumulative decline of 0.1% year-on-year for the first eight months of 2025. Core CPI, excluding volatile food and energy prices, increased by 0.9% year-on-year. On a month-on-month basis, the CPI remained flat, slightly below the market’s forecast of a 0.1% rise.
The Industrial Producer Price Index (PPI), an indicator of production costs, dropped by 2.9% year-on-year in August, in line with expectations. This decline narrowed by 0.7%age points from July, halting an eight-month streak of month-on-month decreases and stabilizing. For the first eight months of 2025, the PPI recorded a cumulative decrease of 2.9%.
The National Bureau of Statistics attributed the CPI decline primarily to a high comparison base from August 2024, with food price increases falling below seasonal norms. The agency noted that the consumer market remains broadly stable, supported by policies to expand domestic demand and boost consumption. These measures have driven a steady rise in core CPI for the fourth consecutive month. Similarly, the stabilization of month-on-month PPI and the narrowing of its year-on-year decline reflect both base effects and the impact of proactive macro policies fostering positive price changes in certain industries.
