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China inflation: CPI slows, PPI deflation deepens

Chinese consumer prices were rising at their slowest pace since January last month, underscoring slack in the economy and waning trends in consumption.

China's consumer price index decelerated to a year-on-year pace of 1.2 per cent in May, from 1.5 per cent in April, according to the government's official figures. That was below the 1.3 per cent pace predicted by forecasters.

The reading is well below Beijing's target of "around 3 per cent" this year a it's also the lowest reading since a five-year low in January, when CPI slumped to 0.8 per cent.

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