Data released by China’s National Bureau of Statistics early Sunday, August 9, showed that the annual consumer price index (CPI), a key measure of inflation, rose less than expected in July, at 0.5% year-on-year, compared to a 1% increase in June. Market expectations had anticipated growth of 0.8%. Meanwhile, the producer price index (PPI) hit a three-month low, rising 3.5% from 4.1% in July, while expectations had been for 3.9% growth.

In contrast, the core PPI, which excludes volatile food and energy prices, rose 0.9%, with food prices increasing by 1.5% in July.