While most countries have seen a reduction in price pressures after soaring highs, China is still struggling with low inflation.
In April, the consumer price index (CPI) rose just 0.1% at an annual rate, down from the 0.7% reading recorded in March.
Meanwhile, the producer price index (PPI) fell lower to -3.6% compared to -2.5% recorded the previous month.
This is in stark contrast to US inflation which rose 4.9% last month, after gradually easing following the Federal Reserve's 10th consecutive interest rate hike.
While not yet at deflationary levels, China's low inflation is likely driven by insufficient demand.
China's economy grew faster than expected in the first quarter as a result of the lifting of Covid-19 restrictions but the recovery has been uneven.
The latest data shows factory activity contracted in April, and continued weakness in the real estate market remains a concern.
Following this slow recovery, it also indirectly darkens the outlook for global economic growth.
Inflation that is too low indicates weak demand or in other words, the economy is not working. This in turn can cause economic slowdown and higher unemployment rates.
