Data released by China’s National Bureau of Statistics on February 11 showed that the annual Consumer Price Index (CPI), a key measure of inflation, rose 0.2% year-on-year in January, down from 0.8% in December. This fell short of market expectations of 0.4% growth and marked the lowest reading in three months, following December’s three-year high. The CPI remained unchanged at 0.2% month-on-month.

Meanwhile, the core CPI, which excludes volatile food and energy prices, rose 0.8%, compared to a 1.2% increase in December.

Separately, China’s Producer Price Index (PPI) remained in negative territory for the 40th consecutive month, falling 1.4% year-on-year in January, compared to a 1.9% decline in December. This was close to expectations of a 1.5% drop.