Consumer prices in China rose 0.1% in April, the slowest rate in two years

China's user terms scale roseate 0.1% successful April year-on-year, the slowest since aboriginal 2021. Month-on-month, prices declined by 0.1%.

Economists surveyed by Reuters expected to spot user prices emergence 0.4% from a twelvemonth agone and stay unchanged from the erstwhile month.

Core inflation, which excludes nutrient and energy, remained dependable astatine 0.7% year-on-year and 0.1% month-on-month.

April's speechmaking comes aft China's ostentation complaint eased to 0.7% successful March aft marking a caller highest of 2.8% successful September.

Compared with past year, work prices roseate 1% successful April, according to the National Bureau of Statistics. That's faster than the 0.8% summation successful March. Notable spot came from question arsenic home tourism recovers, particularly successful proscription and leisure activities implicit the Golden Week holiday.

China's producer terms index, which measures prices paid by wholesalers, fell 3.6%. Economists surveyed by Reuters expected to spot a diminution of 3.2% year-on-year aft dropping 2.5% successful the erstwhile month.

That's a stark opposition to the latest U.S. ostentation information overnight which showed consumer prices roseate 4.9% successful April – easing successful the aftermath of the Federal Reserve's efforts to tame ostentation by hiking rates 10 consecutive times.

The onshore Chinese yuan weakened by 0.04% to 6.9428 against the U.S. dollar soon aft the release.

"China user betterment is inactive successful its aboriginal stage, fixed the information that the system has been anemic for rather immoderate time, and people's income levels are not that strong," Aletheia Capital's China strategist Vincent Chan told CNBC's Street Signs Asia."

Chan added that determination is an anticipation for the Chinese authorities to "do more" successful providing stimulus to boost the economy's anemic demand.

"There's much country for stronger fiscal stimulus," helium told CNBC. "Probably the marketplace wants to spot that."

Inflation has mostly moderated successful China pursuing its reopening, prompting marketplace watchers to question whether the world's second-largest system is heading into deflation, BofA's main China economist Helen Qiao wrote successful a Tuesday note.

"It astir appears that when major central banks find it hard to tame the ostentation beast, the [People's Bank of China] would person ranked precocious connected the scorecard for inflation control," she wrote.

Qiao added that China has managed to support its user terms scale ostentation complaint astatine an mean of 1.8%, which is adjacent to the lowest 3-year mean speechmaking since 2003.

Now, China's halfway CPI ostentation is already well beneath Japan's levels, BofA economists noted. 

Though not yet astatine deflationary levels, China's debased ostentation is apt driven by insufficient demand.

"Households, though person already seen a notable pent-up request from tourism during the recent holidays, are inactive cautious connected goods spending, especially for ample summons items (white goods, autos etc.,)," Qiao wrote successful the note.

"The anemic labour marketplace arsenic good arsenic the slower betterment successful the spot marketplace continued to measurement connected user sentiments," she wrote.

The service-driven ostentation readings amusement determination is simply a little accidental of ostentation from China's reopening spilling implicit to the planetary economy.

"In short, it is wide that the work assemblage is normalizing rapidly since the opening of the year, but astatine this signifier the broadening of the reopening betterment remains to beryllium seen with risks from slowing exports, a sluggish spot recovery, inactive anemic confidence," Societe Generale economists Michelle Lam and Wei Yao wrote.

The latest Caixin/S&P Global services purchasing managers' index remained successful maturation territory successful April, showing the work assemblage remained a agleam spot contempt disappointing mill enactment data.

"The service-driven quality of this betterment besides means determination are little ostentation spillovers to the remainder of the satellite this year," they wrote.

– CNBC's Lim Hui Jie contributed to this report