Yu Weining, Chief Statistician of the Industry Department of the National Bureau of Statistics (NBS), interpreted industrial enterprise profit data for January-May 2026. According to Yu, raw material manufacturing industries recorded rapid profit growth.In Jan-May, profits of above-scale raw material manufacturing industries rose 83.1% year-on-year, contributing 10.2 percentage points to the total profit growth of all above-scale industrial enterprises.By sector: Driven by rising demand from emerging industries including new energy and artificial intelligence, prices of copper, aluminium and other related products stayed elevated, lifting profits of the non-ferrous metal sector by 117.1% and adding 5.3 percentage points to overall industrial profit growth.Boosted by price hikes across the oil industrial chain, the oil processing sector swung from losses to profits year-on-year, while profits of the chemical industry surged 71.6%.

[Cui Dongshu: Auto Industry Profit Margin at 3.4% with Revenue Up 1%, Costs Up 2%, and Profits Down 17%, January-April 2026] Cui Dongshu of the CPCA wrote that from January to April 2026, despite multiple challenges including the complex evolution of the international environment and domestic transformation pressures in China, the national economy got off to a good start with improved quality and efficiency. Profits in the equipment manufacturing and high-tech manufacturing industries grew rapidly, while the raw material manufacturing industry saw double-digit profit growth, laying a solid foundation for stable economic performance throughout the year.

According to NBS data, from January to April, profits of above-scale raw material manufacturing industries were up 88.1% YoY, accelerating 10.2 percentage points from January-March, boosting profits of all above-scale industrial enterprises by 10.3 percentage points.

SMM Nickel News, May 27: Macro and market news: (1) Data from the NBS showed that from January to April, profits of above-designated-size raw material manufacturing industries were up 88.1% YoY, accelerating by 10.2 percentage points from January-March, boosting profits of all above-designated-size industrial enterprises by 10.3 percentage points. (2) Iran: The US and European economies are highly dependent on energy prices and vulnerable to changes in regional situations. This pressure leverage puts the US in a "requesting" position when it comes to reaching a deal with Iran. Spot market: On May 27, SMM #1 refined nickel prices rose 3,100 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,100 yuan/mt, flat from the previous trading day, while premiums for mainstream domestic electrodeposited nickel brands ranged at -500-500 yuan/mt. Futures market: The most-traded SHFE nickel 2606 contract opened higher and continued to rise, rebounding notably from the previous day, closing at 144,690 yuan/mt in the morning session, up 1.91%. Minor clashes between the US and Iran resumed, and uncertainties persist over the Strait of Hormuz, driving a rebound in nickel prices. The current Middle East situation alternates between "ceasefire agreements — violations — peace talk expectations," intensifying nickel price fluctuations. Nickel prices are currently supported by costs on the downside while capped by inventory buildup on the upside. The most-traded SHFE nickel contract is expected to trade within the range of 137,000-145,000 yuan/mt in the short term.

[SMM Tin Midday Review: The Most-Traded Contract Hovered at Highs, Spot Market Trading Remained Sluggish]

SMM April 27 News: Metals market: As of the midday close, domestic market base metals rose across the board. SHFE copper was up 0.38%, SHFE aluminum up 0.3%, SHFE lead up 0.3%, SHFE zinc up 0.7%, SHFE tin up 0.48%, and SHFE nickel up 2.62%. In addition, the most-traded casting aluminum futures rose 0.4%, the most-traded alumina contract rose 3.36%, the most-traded lithium carbonate contract rose 2.75%, the most-traded silicon metal contract rose 0.29%, and the most-traded polysilicon futures fell 4.47%. Ferrous metals mostly rose. Iron ore was flat at 786 yuan/mt, rebar edged up, hot-rolled coil rose 0.15%, and stainless steel rose 1.26%. Coking coal and coke: the most-traded coking coal contract rose 1.23%, and the most-traded coke contract rose 0.44%. Overseas market base metals: as of 11:43, LME metals mostly rose. LME copper was up 0.51%, LME aluminum up 0.95%, LME lead up 0.1%, LME zinc up 0.58%, LME tin edged down, and LME nickel was up 0.71%. Precious metals: as of 11:43, COMEX gold fell 0.11% and COMEX silver fell 0.38%. Domestic precious metals: the most-traded SHFE gold contract rose 0.12%, and the most-traded SHFE silver contract fell 0.08%. In addition, as of the midday close, the most-traded platinum futures rose 1.21%, and the most-traded palladium futures rose 1.52%. As of the midday close, the most-traded Europe containerized freight index contract rose 1.03% to 2,209.8 points. As of 11:43 on April 27, midday futures quotes for selected contracts: Spot and fundamentals Copper: Today, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at a premium of 280 yuan/mt, flat with the previous trading day; standard-quality copper was quoted at a premium of 200 yuan/mt, flat with the previous trading day; SX-EW copper was quoted at a premium of 140 yuan/mt, flat with the previous trading day. The average price of Guangdong #1 copper cathode was 103,085 yuan/mt, up 290 yuan/mt from the previous trading day; the average price of SX-EW copper was 102,985 yuan/mt, up 290 yuan/mt from the previous trading day. Spot market: After the weekend, Guangdong inventory declined again, mainly due to fewer arrivals and some manufacturers stockpiling ahead of the holiday... Macro front China: [NBS: January-March profits of China's above-scale industrial enterprises rose 15.5% YoY; non-ferrous sector profits surged 116.7% YoY] NBS data showed that from January to March, total profits of China's above-scale industrial enterprises reached 1.696 trillion yuan, up 15.5% YoY. From January to March, among above-scale industrial enterprises, state-controlled enterprises posted profits of 619.61 billion yuan (up 10.1% YoY), joint-stock enterprises 1.305 trillion yuan (up 20.9%), foreign-invested and Hong Kong, Macao, and Taiwan-invested enterprises 383.73 billion yuan (up 1.2%), and private enterprises 430.53 billion yuan (up 25.4%). Yu Weining, Chief Statistician of the Industrial Department of the National Bureau of Statistics (NBS), interpreted the industrial enterprise profit data for January–March 2026: In Q1, facing a complex economic environment, the CPC Central Committee and the State Council promptly stepped up macro regulation efforts and proactively implemented more active and effective macro policies. The industrial economy steadily rebounded, profits of above-designated-size industrial enterprises grew at a faster pace, profits in equipment manufacturing and high-tech manufacturing grew rapidly, profits in raw material manufacturing posted double-digit growth, and the efficiency of industrial enterprises continued to improve. [National Energy Administration: China's Oil and Gas Supply Was Generally Stable and Orderly in Q1] The National Energy Administration held a press conference on April 27 to brief on the national energy situation and development achievements in Q1 2026. Xing Yiteng, Deputy Director of the Development Planning Department of the National Energy Administration, noted that energy security was effectively safeguarded. The impacts of the Venezuela crisis and the US-Israel-Iran conflict on China's energy supply were properly managed. In Q1, China's oil and gas supply was generally stable and orderly, with above-designated-size industrial crude oil and natural gas production up 1.3% and 3.0% YoY, respectively. Raw coal production remained stable despite a relatively high base in the same period last year, with above-designated-size industrial raw coal production up 0.1% YoY. The safety situation in the power sector was stable and improving, with efficient completion of power emergency responses to various natural disasters and successful completion of power supply assurance for the Chinese New Year and the Two Sessions. (Jin10 Data) [PBOC Achieved a Net Withdrawal of 382 Billion Yuan via Reverse Repo Operations] The PBOC conducted 218.5 billion yuan of 7-day reverse repo operations today. As 600 billion yuan of 1-year MLF and 500 million yuan of 7-day reverse repo operations matured today, a net withdrawal of 382 billion yuan was achieved. (Jin10 Data APP) US dollar: As of 11:43, the US dollar index fell 0.08% to 98.42. Multiple sources revealed that the US Department of Justice was expected to conclude its criminal investigation into Fed Chairman Jerome Powell as early as Friday, thereby ending the standoff that could have delayed the appointment of Powell's successor. Sources said senior DOJ officials recently contacted several senators, including Republican Senator Tom Tillis, a member of the Senate Banking Committee, informing them of plans to drop the investigation into alleged cost overruns in the renovation of the US Fed's Washington headquarters and refer the matter to the Fed's internal watchdog. Powell's term is set to expire next month, but he indicated in March that he would remain in office until Trump's nominee for Fed Chairman, Kevin Warsh, is confirmed. According to the CME "Fed Watch" tool, the probability of the US Fed keeping interest rates unchanged in April was 100%. The probability of a cumulative 25-basis-point interest rate cut by June was 4.7%, while the probability of keeping rates unchanged was 95.3%. (Jin10 Data) Data: Germany's May GfK Consumer Confidence Index, the UK's April CBI Retail Sales Balance, and the US April Dallas Fed Business Activity Index are scheduled for release today. Crude oil: As of 11:43, oil prices in both markets rose, with WTI up 0.85% and Brent up 1.11%. Crude oil futures rose at the start of Monday's session as peace talks between the US and Iran reached an impasse, while oil shipments through the Strait of Hormuz remained limited, keeping global oil supply under sustained pressure. Crude oil futures prices swung wildly recently, as traders had to predict not only when oil exports from the Persian Gulf would resume, but also how long it would take for production in the region to recover to pre-war levels. Trump said on Sunday that Iran was facing growing domestic pressure due to its inability to export oil, which could cause long-term damage to its energy export infrastructure. Goldman Sachs analysts said on Sunday that they had pushed back their expectations for the Strait of Hormuz to return to normal export levels from mid-May to late June. Meanwhile, they raised their Q4 WTI crude oil price expectations from $75 per barrel to $83 per barrel. (Jin10 Data) Citi raised its forecast for the average Brent crude oil price for the remainder of 2026 on Sunday evening local time, stating that if oil shipments through the Strait of Hormuz continued to be disrupted through the end of June, oil prices could rise to $150 per barrel. The bank raised its base-case average price forecasts for Brent crude oil in Q2, Q3, and Q4 of 2026 to $110, $95, and $80 per barrel, respectively. Citi also pushed back its expectations for the reopening of the Strait of Hormuz from mid-to-late April to the end of May. Citi stated: "Given that significant gaps remain between the two sides on their respective red-line issues, we believe the risks are tilted toward the upside for near-term bullish sentiment and H2 2026 base-case oil price forecasts." In the bullish scenario (30% probability), Citi assumed that oil shipment disruptions would persist through the end of June at a scale similar to the current level of disruption. Under this scenario, Brent prices could surge to $150 per barrel, with Q2 and Q3 2026 averages approaching $130 per barrel, before pulling back to around $100 in Q4. The bank also proposed a "super bullish" scenario in which the Strait of Hormuz remained closed beyond June, noting that this would have severe implications for the share of oil expenditure in both global and US economic output. Spot Market Overview: ► ► ► ► ► ► ► ► ► ► ►

Following the cancellation of China’s export tax rebates for photovoltaic products, the global solar trade landscape is undergoing significant restructuring. India, underpinned by massive domestic demand and unwavering policy commitment, is rapidly emerging as one of the most strategic markets outside of China. As a high-growth region with global competitiveness, India accelerated its energy transition throughout 2025, demonstrating remarkable market resilience. By November 2025, India’s cumulative PV installed capacity surpassed 130 GW. Notably, the market added approximately 35 GW in 2025 alone, positioning the country as a core driver of renewable energy expansion both regionally and globally.

Recently, IFF (NYSE: IFF), a global leader in flavors, fragrances, food ingredients, and biosciences, announced that its flavor R&D and fragrance raw material manufacturing plant in Benicarló, Spain, has installed a natural hydrogen production facility. This facility, supplied with renewable electricity by Iberdrola, one of the world's largest renewable energy producers, is used for hydrogenation reactions required in the production of key fragrance ingredients, marking a significant step for IFF in the field of sustainable manufacturing. It is reported that the system can produce 100 mt of clean hydrogen annually using renewable energy. The unit is equipped with a built-in compressor for on-site hydrogen storage, which not only reduces the product's life cycle assessment (LCA) but will also support global customers in achieving their decarbonization goals. Jaime Gomezflores, Senior Vice President of Global Manufacturing Operations for IFF Scent, stated that the new hydrogen production capacity at the Benicarló plant represents a major shift from traditional "gray hydrogen" methods that rely on fossil fuels such as steam methane reforming, and is the first step in reducing future operational emissions through technological innovation and production scale-up. The IFF Benicarló plant specializes in fragrance raw material manufacturing, and its location is well-suited for green hydrogen production due to Spain's abundant natural resources and industrial demand. The hydrogen production facility utilizes solar panels to supply hydrogen for hydrogenation reactions needed to produce 50 key IFF ingredients, such as Cashmeran and Kharismal. By switching to green hydrogen, the plant can reduce carbon dioxide emissions by 2,000 mt annually, supporting IFF's sustainable development goals—to reduce direct emissions (Scope 1 and 2) by 50% and indirect emissions (Scope 3) by 30% by 2030, with a longer-term goal of achieving net-zero emissions in business operations by 2040. It is understood that this new production facility is part of a 10-year renewable hydrogen energy agreement between IFF and Iberdrola. IFF plans to make this first integrated green hydrogen production unit in the fragrance industry a blueprint for innovation across its entire manufacturing network. This transition to green hydrogen is one of many initiatives by IFF to support sustainable future operations; previously, the company also launched ENVIROCAP™, a fabric care biodegradable fragrance delivery system compliant with ECHA regulations, and partnered with Reservas Votorantim to promote sustainable bio-resource exploration in the Atlantic Rainforest of Brazil.

Data from the National Bureau of Statistics (NBS) showed that in September 2025, the national consumer price index (CPI) fell 0.3% year-on-year. Specifically, it declined by 0.2% in urban areas and 0.5% in rural areas; food prices dropped by 4.4%, while non-food prices rose by 0.7%; prices of consumer goods decreased by 0.8%, while service prices increased by 0.6%. On average from January to September, the national consumer price index fell by 0.1% compared with the same period last year. In September, the national consumer price index rose by 0.1% month-on-month. Specifically, it was flat in urban areas and increased by 0.2% in rural areas; food prices rose by 0.7%, while non-food prices fell by 0.1%; prices of consumer goods increased by 0.3%, while service prices decreased by 0.3%. Data from the National Bureau of Statistics also showed that in September 2025, the national producer price index (PPI) for industrial producers fell by 2.3% year-on-year, with the decline narrowing by 0.6 percentage points from the previous month, and remained flat month-on-month. The purchasing prices for industrial producers fell by 3.1% year-on-year, with the decline narrowing by 0.9 percentage points from the previous month, and rose by 0.1% month-on-month. On average from January to September, the producer price index for industrial producers fell by 2.8% compared with the same period last year, while the purchasing prices for industrial producers dropped by 3.2%. Core CPI YoY Growth Continued to Expand in September 2025 PPI YoY Decline Continued to Narrow —Dong Lijuan, Chief Statistician of the Department of Urban Socio-Economic Survey of the NBS, Interprets CPI and PPI Data for September 2025 In September, the consumer market operated steadily overall. The consumer price index (CPI) rose by 0.1% month-on-month and fell by 0.3% year-on-year. The core CPI, which excludes food and energy prices, rose by 1.0% year-on-year, with the growth rate expanding for the fifth consecutive month. With the in-depth advancement of the national unified market and continuous optimization of market competition order, the producer price index (PPI) for industrial producers remained flat month-on-month; it fell by 2.3% year-on-year, with the decline narrowing by 0.6 percentage points from the previous month. I. CPI Turned from Flat to Rising MoM, Core CPI YoY Growth Rebounded to 1% CPI rebounded somewhat on a monthly basis, turning from flat in the previous month to an increase of 0.1%. Among these, food prices rose by 0.7% month-on-month, with the growth rate expanding by 0.2 percentage points from the previous month, contributing approximately 0.13 percentage points to the monthly CPI increase. Within food items, prices of fresh vegetables, eggs, fresh fruits, mutton, and beef all showed seasonal increases, ranging between 0.9% and 6.1%; meanwhile, pork and aquatic products were in ample supply, with prices falling by 0.7% and 1.8%, respectively. Prices of industrial consumer goods excluding energy rose by 0.5%, contributing approximately 0.12 percentage points to the monthly CPI increase. Among these, domestic gold jewelry prices rose by 6.5% due to the impact of rising international gold prices; with the launch of new autumn clothing, apparel prices increased by 0.8%; prices of recreational durable goods, household appliances, and daily household articles rose by 0.9%, 0.6%, and 0.6%, respectively. Driven by declines in service and energy prices, the CPI increase MoM was slightly below seasonal levels. Service prices fell 0.3%, contributing approximately 0.12 percentage points to the MoM decline in CPI. Among these, due to the end of the summer holiday period and the Mid-Autumn Festival falling in a different month compared to previous years, prices for air tickets, hotel accommodation, and tourism dropped 13.8%, 7.4%, and 6.1% respectively, collectively contributing about 0.17 percentage points to the MoM decline in CPI. Energy prices decreased 0.8%, with domestic gasoline prices falling 1.7% influenced by changes in international oil prices. CPI fell 0.3% YoY, with the decline narrowing by 0.1 percentage points from the previous month. The YoY decline in CPI was mainly due to the carryover effect. Of the 0.3% YoY change in CPI this month, the carryover effect was approximately -0.8 percentage points, while the new impact from price changes this year was about 0.5 percentage points. By category, food and energy prices declined. Food prices dropped 4.4%, with the decline widening by 0.1 percentage points from the previous month, contributing approximately 0.83 percentage points to the YoY decline in CPI, making it the primary factor driving the decrease. Within food, prices for pork, fresh vegetables, eggs, and fresh fruit fell 17.0%, 13.7%, 13.5%, and 4.2% respectively, collectively contributing about 0.78 percentage points to the YoY decline in CPI; prices for beef and mutton rose 4.6% and 0.8% respectively, with mutton prices increasing for the first time after 44 consecutive months of decline. Energy prices decreased 2.7%, contributing approximately 0.2 percentage points to the YoY decline in CPI. Core CPI, which excludes food and energy, rose 1.0% YoY, marking the fifth consecutive month of expanding growth and the first time in nearly 19 months that the growth rate returned to 1%. Among these, prices for industrial consumer goods excluding energy increased 1.8%, expanding for the fifth consecutive month. Within industrial consumer goods, prices for gold jewelry and platinum jewelry rose 42.1% and 33.6% respectively, while prices for household appliances, daily household necessities, and communication tools increased 5.5%, 3.2%, and 1.5% respectively, all with expanding growth rates. Service prices rose 0.6%, remaining relatively stable, with prices for medical services and household services increasing 1.9% and 1.6% respectively, while prices for hotel accommodation and air tickets fell 1.5% and 1.7% respectively. II. PPI Was Flat MoM, YoY Decline Continued to Narrow PPI was flat MoM for the second consecutive month. The main characteristics of PPI's MoM performance this month were: First, improvements in the supply-demand structure drove significant price stabilization in some sectors. Coal processing prices rose 3.8% MoM, coal mining and washing prices increased 2.5%, and ferrous metals smelting and rolling processing prices rose 0.2%, all up for two consecutive months; PV equipment and components manufacturing prices shifted from a 0.2% decline last month to a 0.8% increase. Non-metallic mineral products industry prices and lithium-ion battery manufacturing prices fell 0.4% and 0.2% respectively, with the declines narrowing by 0.6 and 0.3 percentage points from the previous month. Second, imported factors led to a MoM decline in domestic petroleum-related industry prices. Falling international crude oil prices drove down domestic petroleum-related industry prices MoM. Specifically, petroleum extraction prices fell 2.7%, refined petroleum product manufacturing prices fell 1.5%, organic chemical raw material manufacturing prices fell 0.6%, and chemical fiber manufacturing prices fell 0.2%. The PPI fell 2.3% YoY, with the decline narrowing by 0.6 percentage points from the previous month. Besides the impact of a lower comparison base from the same period last year, the effects of China's macro policies continued to manifest, with some industries showing positive price changes. First, the deepening advancement of building a unified national market contributed to a narrowing of the YoY decline in prices for related industries. Capacity management in some sectors showed results, market competition order continued to improve, and the YoY price declines narrowed. The price declines for coal processing, ferrous metals smelting and pressing, coal mining and washing, PV equipment and components manufacturing, battery manufacturing, and non-metallic mineral products narrowed by 8.3, 3.4, 3.0, 2.4, 0.5, and 0.4 percentage points, respectively, from the previous month. These six industries reduced the downward drag on the PPI YoY by about 0.34 percentage points compared to the previous month. Second, industrial structure upgrading and the release of consumption potential drove YoY price increases in related industries. The accelerated construction of a modern industrial system, positive trends in high-end, intelligent, and green development of manufacturing, and steadily expanding market demand led to a 1.4% YoY increase in aircraft manufacturing prices, a 1.2% rise in electronic specialty material manufacturing prices, a 0.9% increase in waste resource comprehensive utilization industry prices, and a 0.1% rise in wearable smart device manufacturing prices. The effects of policies to boost consumption continued to appear, with quality and upgrading consumer demand being released, leading to a 14.7% YoY increase in arts, crafts, and ceremonial product manufacturing prices, a 4.0% rise in sports ball manufacturing prices, and a 1.8% increase in nutritional food manufacturing prices. Recommended Reading:

According to data from the National Bureau of Statistics (NBS), in September 2025, the national consumer price index decreased by 0.3% YoY. Specifically, prices in urban areas fell by 0.2%, while those in rural areas dropped by 0.5%; food prices decreased by 4.4%, while non-food prices increased by 0.7%; prices of consumer goods fell by 0.8%, while prices of services rose by 0.6%. On average from January to September, the national consumer price index decreased by 0.1% compared to the same period last year. In September, the national consumer price index increased by 0.1% MoM. Specifically, prices in urban areas remained flat, while those in rural areas rose by 0.2%; food prices increased by 0.7%, while non-food prices decreased by 0.1%; prices of consumer goods rose by 0.3%, while prices of services fell by 0.3%. Consumer Prices in September 2025: Down 0.3% YoY, Up 0.1% MoM In September 2025, the national consumer price index decreased by 0.3% YoY. Specifically, prices in urban areas fell by 0.2%, while those in rural areas dropped by 0.5%; food prices decreased by 4.4%, while non-food prices increased by 0.7%; prices of consumer goods fell by 0.8%, while prices of services rose by 0.6%. On average from January to September, the national consumer price index decreased by 0.1% compared to the same period last year. In September, the national consumer price index increased by 0.1% MoM. Specifically, prices in urban areas remained flat, while those in rural areas rose by 0.2%; food prices increased by 0.7%, while non-food prices decreased by 0.1%; prices of consumer goods rose by 0.3%, while prices of services fell by 0.3%. I. Year-over-Year Changes in Prices of Various Goods and Services In September, prices for food, tobacco, and alcohol decreased by 2.6% YoY, dragging down the CPI (Consumer Price Index) by approximately 0.74 percentage points. Within the food category, fresh vegetable prices fell by 13.7%, pulling down the CPI by about 0.35 percentage points; egg prices decreased by 11.9%, dragging down the CPI by about 0.08 percentage points; prices of livestock meat dropped by 8.4%, pulling down the CPI by approximately 0.27 percentage points, among which pork prices fell by 17.0%, dragging down the CPI by about 0.26 percentage points; fresh fruit prices decreased by 4.2%, pulling down the CPI by about 0.09 percentage points; grain prices fell by 0.7%, dragging down the CPI by about 0.01 percentage points; prices of aquatic products increased by 0.9%, pushing up the CPI by approximately 0.02 percentage points. Among the other seven major categories, six saw year-over-year price increases, while one decreased. Specifically, prices for other supplies and services, household goods and services, and clothing increased by 9.9%, 2.2%, and 1.7%, respectively; prices for health care, education, culture and entertainment, and housing rose by 1.1%, 0.8%, and 0.1%, respectively; while prices for transportation and communication decreased by 2.0%. II. Month-over-Month Price Changes for Various Goods and Services In September, prices for food, tobacco, and alcohol rose 0.5% MoM, contributing approximately 0.13 percentage points to the CPI increase. Within food, fresh vegetable prices increased 6.1%, contributing about 0.13 percentage points to the CPI rise; egg prices rose 2.7%, contributing about 0.02 percentage points; fresh fruit prices increased 1.7%, contributing about 0.03 percentage points; aquatic product prices fell 1.8%, dragging down the CPI by about 0.04 percentage points; and pork prices dropped 0.7%, dragging down the CPI by about 0.01 percentage points. Among the other seven major categories, four experienced price increases, one remained flat, and two declined on a monthly basis. Specifically, prices for other goods and services and clothing rose 1.3% and 0.7%, respectively; prices for household goods and services and health care increased 0.3% and 0.2%, respectively; housing prices were flat; while prices for transportation and communication and education, culture, and recreation fell 0.9% and 0.4%, respectively. Core CPI YoY Growth Continued to Expand in September 2025 PPI YoY Decline Narrowed Further —Dong Lijuan, Chief Statistician of the Urban Department of the National Bureau of Statistics (NBS), Interprets CPI and PPI Data for September 2025 In September, the consumer market operated steadily overall. The Consumer Price Index (CPI) rose 0.1% MoM but fell 0.3% YoY. Core CPI, which excludes food and energy prices, increased 1.0% YoY, marking the fifth consecutive month of expanding growth. As the development of a unified national market advanced and market competition order continued to improve, the Industrial Producer Price Index (PPI) remained flat MoM; it declined 2.3% YoY, with the rate of decline narrowing by 0.6 percentage points compared to the previous month. I. CPI Turned from Flat to an Increase MoM, Core CPI YoY Growth Rebounded to 1% CPI showed a rebound MoM, shifting from being flat in the previous month to an increase of 0.1%. Food prices rose 0.7% MoM, with the growth rate widening by 0.2 percentage points from the previous month, contributing approximately 0.13 percentage points to the MoM CPI increase. Within food, prices for fresh vegetables, eggs, fresh fruit, mutton, and beef all showed seasonal increases, ranging between 0.9% and 6.1%; meanwhile, pork and aquatic products were in ample supply, with their prices falling 0.7% and 1.8%, respectively. Prices of industrial consumer goods excluding energy rose 0.5% MoM, contributing about 0.12 percentage points to the MoM CPI increase. Among these, domestic gold jewelry prices rose 6.5%, influenced by rising international gold prices; clothing prices increased 0.8% due to new autumn season stock; and prices for recreational durable goods, household appliances, and daily household articles rose 0.9%, 0.6%, and 0.6%, respectively. Affected by declines in service and energy prices, the CPI increase MoM was slightly lower than the seasonal level. Service prices fell 0.3%, contributing to a decrease of about 0.12 percentage points in the CPI MoM. Among them, due to the end of the summer travel season and the Mid-Autumn Festival falling in a different month compared to previous years, prices for air tickets, hotel accommodation, and tourism dropped 13.8%, 7.4%, and 6.1%, respectively, collectively contributing to a decrease of about 0.17 percentage points in the CPI MoM. Energy prices fell 0.8%, with domestic gasoline prices declining 1.7% due to changes in international oil prices. The CPI fell 0.3% YoY, with the decline narrowing by 0.1 percentage points from the previous month. The YoY decline in CPI was mainly due to the carryover effect. Of the 0.3% YoY change in CPI this month, the carryover effect was approximately -0.8 percentage points, while the new impact from this year's price changes was about 0.5 percentage points. By category, food and energy prices declined. Food prices fell 4.4%, with the decline widening by 0.1 percentage points from the previous month, contributing to a decrease of about 0.83 percentage points in the CPI YoY, making it the main factor driving the YoY decline in CPI. Among food items, prices for pork, fresh vegetables, eggs, and fresh fruit dropped 17.0%, 13.7%, 13.5%, and 4.2%, respectively, collectively contributing to a decrease of about 0.78 percentage points in the CPI YoY; prices for beef and mutton rose 4.6% and 0.8%, respectively, with mutton prices increasing for the first time after 44 consecutive months of decline. Energy prices fell 2.7%, contributing to a decrease of about 0.2 percentage points in the CPI YoY. Core CPI, which excludes food and energy prices, rose 1.0% YoY, marking the fifth consecutive month of expansion in the growth rate and the first time in nearly 19 months that the growth rate returned to 1%. Among these, prices of industrial consumer goods excluding energy increased 1.8%, with the growth rate expanding for the fifth consecutive month. Among industrial consumer goods, prices of gold jewelry and platinum jewelry rose 42.1% and 33.6%, respectively, while prices of household appliances, daily household necessities, and communication tools increased 5.5%, 3.2%, and 1.5%, respectively, with all growth rates expanding. Service prices rose 0.6%, remaining relatively stable, with prices for medical services and household services increasing 1.9% and 1.6%, respectively, while prices for hotel accommodation and air tickets fell 1.5% and 1.7%, respectively. II. PPI Was Flat MoM, YoY Decline Continued to Narrow PPI was flat MoM for the second consecutive month. The main characteristics of PPI's MoM performance this month were: First, improvements in the supply-demand structure drove a noticeable stabilization of prices in some industries. Coal processing prices rose 3.8% MoM, coal mining and washing prices increased 2.5% MoM, and ferrous metals smelting and rolling processing prices rose 0.2% MoM, all rising for two consecutive months; prices for PV equipment and components manufacturing shifted from a 0.2% decline last month to a 0.8% increase MoM. Prices for non-metallic mineral products and lithium-ion battery manufacturing fell 0.4% and 0.2% MoM, respectively, with the declines narrowing by 0.6 and 0.3 percentage points from the previous month. Second, imported factors led to a MoM decline in domestic petroleum-related industry prices. Falling international oil prices drove down domestic petroleum-related industry prices MoM. Specifically, petroleum extraction prices fell 2.7%, refined petroleum product manufacturing prices dropped 1.5%, organic chemical raw material manufacturing prices decreased 0.6%, and chemical fiber manufacturing prices declined 0.2%. The PPI fell 2.3% YoY, with the decline narrowing by 0.6 percentage points from the previous month. In addition to the lower comparison base from the same period last year, the effects of China's macro policies continued to manifest, with some industries showing positive price changes. First, the deepening advancement of the national unified market contributed to a narrowing of the YoY decline in prices for related industries. Capacity management in some sectors showed results, market competition order continued to improve, and YoY price declines narrowed. The price declines for coal processing, ferrous metals smelting and pressing, coal mining and washing, PV equipment and components manufacturing, battery manufacturing, and non-metallic mineral products narrowed by 8.3, 3.4, 3.0, 2.4, 0.5, and 0.4 percentage points, respectively, from the previous month. These six industries reduced the downward drag on the YoY PPI by approximately 0.34 percentage points compared to the previous month. Second, industrial structure upgrading and the release of consumption potential drove YoY price increases in related industries. The accelerated construction of a modern industrial system, positive trends in high-end, intelligent, and green development of manufacturing, and steady expansion of market demand led to a 1.4% YoY increase in aircraft manufacturing prices, a 1.2% rise in electronic specialty material manufacturing prices, a 0.9% increase in waste resource comprehensive utilization industry prices, and a 0.1% gain in wearable smart device manufacturing prices. The effects of policies to boost consumption continued to appear, with quality and upgrading consumption demand being released, leading to a 14.7% YoY increase in arts, crafts, and ceremonial product manufacturing prices, a 4.0% rise in sports ball manufacturing prices, and a 1.8% increase in nutritional food manufacturing prices.