China’s consumer price index (CPI) saw a year-on-year increase of 1.8% in April, which was below market expectations, data released by the National Bureau of Statistics shows.
The growth rate was the lowest in the past 18 months.
The producer price index (PPI) fell by 2.0% in April, compared with a 2.3% decline in March.
The low gauge reflects the weakness of both consumption and investment, BofA Merrill Lynch Global Research writes in a report.
"Consumption was affected by the ongoing anti-corruption campaign and slowing nominal income growth," the report writes. "Investment was impacted by both the anti-corruption movement and the property sector downturn."
The report expects government policies to be more growth-supportive in the future.