BEIJING, Oct. 14 (Xinhua) -- China's consumer inflation picked up in September, with analysts expecting a gradual recovery in prices to gain traction as improving supply-demand conditions and stronger policy support help bolster domestic demand.

The country's consumer price index (CPI), a main gauge of inflation, rose 0.9 percent year on year in September on higher energy and industrial consumer goods prices, according to data released by the National Bureau of Statistics (NBS) on Wednesday.

On a monthly basis, the CPI increased 0.2 percent, with the growth rate narrowing by 0.2 percentage points from the previous month. In the first nine months of 2026, consumer prices rose 0.9 percent from a year earlier.

The moderate rise reflected improving supply and demand conditions in certain sectors, supported by policies to expand domestic demand and curb excessive competition, noted Liu Fang, an analyst with the National Development and Reform Commission.

The year-on-year increase in September was mainly driven by higher energy and industrial consumer goods prices, while falling food prices weighed on overall inflation, NBS statistician Dong Lijuan explained in a statement.

Gasoline prices surged 16.6 percent year on year, contributing approximately 0.47 percentage points to the overall CPI increase, the data revealed. Prices of industrial consumer goods, excluding energy, rose 1.6 percent year on year, contributing about 0.39 percentage points to the CPI growth.

Service prices increased by 0.8 percent, unchanged from August, contributing around 0.4 percentage points to the CPI increase. Travel-related service prices climbed 2.1 percent, while medical service prices were up by 4 percent.

Food prices, meanwhile, fell 1.7 percent year on year, with the decline widening by 0.3 percentage points from August. Pork and fresh vegetable prices fell 10 percent and 8.1 percent respectively, dragging down the overall CPI by approximately 0.33 percentage points.

As the country's pork market gradually bottoms out and stabilizes, the downward pressure from pork prices on overall consumer inflation is expected to ease, noted Wen Bin, chief economist at China Minsheng Bank.

Meanwhile, increased services consumption during the National Day holiday is expected to provide further support for recovery in core inflation, which excludes food and energy prices, Wen said.

Wednesday's data also showed China's producer price index (PPI), which measures costs for goods at the factory gate, rose 5 percent year on year in September, with the growth rate accelerating by 1.2 percentage points from August and marking the fastest growth since June 2022.

The faster growth was mainly driven by rising international crude oil and non-ferrous metals prices, changes in supply and demand in certain energy and raw material industries, and growing demand from emerging sectors such as artificial intelligence (AI), NBS statistician Dong Lijuan said.

The inflation data came as China has rolled out a series of measures to stimulate consumption and strengthen domestic demand, seeking to support economic growth and encourage a reasonable recovery in prices.

In July, China released its first five-year plan dedicated exclusively to expanding consumption. The plan aims to unlock the full potential of the country's super-large market, optimize the consumption structure, and improve people's livelihoods through targeted measures.

On the monetary front, the People's Bank of China has pledged to make better use of both aggregate and structural monetary policy tools and enhance coordination between monetary and fiscal policies to promote stable economic growth and a reasonable recovery in prices.

Looking ahead, positive factors supporting a moderate recovery in prices are expected to continue building as China strengthens countercyclical policy support, advances the development of a unified national market and improves employment and income expectations, helping unlock domestic demand potential, Liu noted.

Meanwhile, growing demand from emerging sectors such as AI and continued efforts to curb excessive competition are expected to support prices and improve price transmission. With these factors taking effect, China's overall price levels are expected to remain within a reasonable range for the rest of the year, Liu predicted.