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The producer price index increased 3.8%, according to showed.
Core CPI, excluding volatile food and energy prices, climbed 1% in August, edging up from a 0.9% gain in July.
Dong Lijuan, chief statistician at NBS, attributed the rebound in inflation to volatile global commodity prices, seasonal food price gains, and rising demand in high-tech industries, according to a statement accompanying the release.
Danske Bank earlier this week lowered its 2026 GDP growth forecast for China to 4.6% from 4.8% on the back of disappointing consumer data in recent months, while trimming its consumer-inflation forecast to 0.8% for this year from a previous 1%.
"China's domestic economy remains stuck in a slump, with a negative feedback loop of falling home prices, high savings, weak employment, and slow consumer spending," said Allan von Mehren, chief China economist at Danske Bank. "Until we see a moderate recovery in the housing market, we expect household confidence to remain low and private consumption growth weak. "
Growth in the world's second-largest economy has lost momentum after a solid start to the year, with expansion in the second quarter at the . Economic data for July showed retail sales and urban investment both weakened, adding to pressure on Beijing to step up support for the remainder of the year.
The youth unemployment rate in urban areas
