China's annual consumer inflation sped up in June, but wholesale prices remained entrenched in deflation, data on Wednesday showed.
The June consumer price index rose 2.3 percent from the year ago period, compared with a Reuters forecast of a 2.4 percent increase after a 2.5 percent rise in May.
Producer prices meanwhile fell 1.1 percent on an annual basis, versus the 1 percent drop a Reuters poll was expecting and following a decline of 1.4 percent in the previous month.
Chinese stocks extended losses on the news, with the Shanghai Composite index falling 0.3 percent in early trading.
"What's reflected here is no big surprise," said Medha Samant, investment director of Asian equities at Fidelity Worldwide Investment.
"Food prices which make up big chunk of the CPI basket have been stable in china. Yes, they are at times volatile, especially during festival times but they sort of trend at this slight inflationary level depending on demand, so we are well within expectations," he added.