(MENAFN) China’s consumer prices fell by 0.3% year-on-year in September, according to data released Wednesday by the National Bureau of Statistics, signaling ongoing pressure on inflation in the world’s second-largest economy. On a monthly basis, consumer prices inched up by 0.1%, indicating only a slight short-term gain.

This marks a continuation of a downward trend, following August’s annual inflation rate, which also showed a contraction of 0.4%. The persistent negative headline inflation underscores challenges in reviving consumer demand amid cautious economic conditions.

However, the core inflation rate—which excludes typically volatile food and energy prices—rose to 1% in September. This increase marks the fifth consecutive monthly rise in core inflation and represents the most substantial gain since February 2024. The data suggests underlying price pressures are building despite overall consumer price declines.

These mixed signals from China’s inflation data will be closely monitored by policymakers and investors amid ongoing efforts to stimulate growth without stoking excessive price rises.

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