The Chinese National Bureau of Statistics released its consumer and producer price inflation data for China on Sunday. The Chinese consumer price index (CPI) rose at annual rate of 1.6% in July, exceeding expectations for a 1.5% increase, after a 1.4% gain in May.

The increase was driven by rises in food and non-food prices. Food prices rose at an annual rate of 2.7% in July, while non-food prices increased 1.1%.

On a monthly basis, consumer price inflation increased 0.3% in July, after a flat reading in June.

The Chinese producer price index (PPI) dropped 5.4% in July, missing forecasts of a 5.0% fall, after a 4.8% decline in June. It was the biggest decline since October 2009.