China's factory-gate prices hit three-month low as demand stays weak

China's producer price inflation slowed more than expected in July to its weakest in three months, while consumer inflation also eased, official data showed, as global energy prices retreated.

Facing a two-speed economy — robust factory output and exports but sluggish domestic demand — Beijing has pledged to support growth by speeding up already-budgeted infrastructure spending through the year-end.

Analysts said lower oil prices combined with weak demand were the main drivers behind the softer readings.