China's consumer inflation in April came out slightly above market expectation but still well within the range of government target. The producer price index however, declined further.

China's consumer price index (CPI) rose 2.4 percent in April from a year ago, slightly above medium forecast of a 2.3 percent rise but still running below the government annual goal of 3.5 percent.

Month-on-month consumer price rose 0.2 percent versus a forecast of an increase of 0.1 percent.

China's producer prices, which measure inflation at a wholesale level, dropped 2.6 percent in April, sharper than the annual drop of 1.9 percent in March. This indicates falling prices in factory output, which reduces concerns on government tightening policies.

Food prices rose 4 percent last month from a year earlier, one of the main drivers for the pickup in broader inflation. Transportation and communication costs fell 1.1 percent after March's 0.3 percent decline.