China’s annual inflation rate edged up to 0.9% in September 2026 from 0.8% in August, slightly below market expectations of 1%. It marked the highest reading since June, with non-food inflation accelerating (1.5% vs 1.2% in August), driven by a sharper rise in transport costs (4.3% vs 2.5%) amid higher gasoline prices and stronger travel demand ahead of the Golden Week break. Upward price pressure also came from clothing (1.2% vs 1.3%), healthcare (2.7% vs 2.7%), and education (1.4% vs 1.4%). In contrast, housing costs stayed subdued (-0.3% vs -0.3%). On the food side, prices declined for the sixth straight month, pointing to the steepest pace in four months (-1.7% vs -1.4%), weighed down by a further drop in pork prices, as abundant pork supplies and weak consumption weighed on prices. Core inflation, excluding food and energy, rose 1.0% yoy, unchanged from August. On a monthly basis, consumer prices rose 0.2%, below forecasts of 0.3% and slowing from August’s six-month high of 0.4%.