The consumer price index (CPI) in China went up by 1.2 percent year-on-year in May, while the Producer Price Index (PPI) fell 4.6 percent year-on-year, the National Bureau of Statistics of China revealed on Tuesday.

Reuters news agency said annual consumer inflation eased due to a significant drop in food costs.

May’s CPI reading was lower than the 1.5 percent increase registered in April. It was also lower than the 1.3 percent forecast.

The PPI for manufactured goods remained unchanged from April, when it also suffered a 4.6 percent year-on-year drop said the Bureau of Statistics.