"As food price inflation may continue to ease on the back of falling pork and fresh vegetable prices, we expect full year CPI inflation to remain comfortably below the 3 percent government target. This leaves ample room for monetary easing," HSBC said in a note after the data.
Separately, ANZ analysts said in a note that they expected producer price index (PPI) inflation "should continue to improve and turn positive in the second half of 2016," but they noted overcapacity would likely weigh on the PPI in the medium term.
Key economic indicators including industrial production, fixed asset investment and retail sales were also due from China in the coming days in another pulse-check for the world's second largest economy.
Elsewhere, the Indian central bank kept its repo-rate unchanged at 6.50 percent and its cash reserve ratio unchanged at 4 percent. In its policy statement, the Reserve Bank of India (RBI) said monetary policy remains "accommodative" and will "continue to emphasize the adequate provision of liquidity."
This was the last bi-monthly monetary policy statement delivered by outgoing RBI Governor Raghuram Rajan, who will step down from his position in September.
India's stock market had a muted reaction to the RBI decision, which was in line with analysts' expectations. Benchmark indexes traded lower for much of the morning session, with the Nifty 50 down 0.67 percent and the Sensex off by 0.71 percent in the afternoon.
The rupee wavered against the dollar, trading as high as 66.79 and as low as 66.98 during the session. As of 3:09 p.m. HK/SIN, the dollar/rupee pair traded at 66.93.
Major energy plays across the region closed mostly higher, following a nearly 3 percent advance in oil prices on Monday. There was speculation over whether producers might rein in supply after reports said OPEC President Mohammed bin Saleh al-Sada confirmed a September meeting on Monday.
Shares of Santos gained 1.71 percent, Woodside Petroleum was up 1.06 percent and Oil Search was up 1.35 percent. Japan's Inpex gained 3.25 percent, Fuji Oil was up 4.25 percent and Japan Petroleum advanced 2.37 percent.
"News that OPEC would be having a September meeting with certain members keen to push for supply cuts again served as the impetus for oil prices to rally," said Angus Nicholson, a market analyst at brokerage firm IG, in a note Tuesday morning.
"While a deal is highly unlikely to eventuate, the fact that it is even being mentioned shows how much difficulty the past month's renewed selloff was causing many struggling OPEC members."
During Asian hours on Tuesday, oil prices retraced some of Monday's gains. U.S. crude futures were down 1 percent at $42.59 a barrel, while global benchmark Brent shed 1.08 percent to $44.90.