China’s consumer inflation slowed to the weakest pace in two years in April while producer prices fell deeper into deflation, reflecting muted domestic demand and softer commodity costs.

The consumer price index rose 0.1% last month from a year earlier, the National Bureau of Statistics said Thursday, compared with a 0.7% increase in March. The median estimate in a Bloomberg survey of economists was for a 0.3% uptick.

Producer prices fell 3.6% in April after declining 2.5% in the previous month. That was more than economists’ expectations for a 3.3% drop.

The April figures were likely affected by the high base of comparison from last year. Consumer prices had increased rapidly then as Covid lockdowns of major cities — including Shanghai — battered supply chains and pushed people to stockpile food.

Producer-price deflation is also being driven by falling costs for commodities like iron ore and crude oil.

The inflation data may help to inform the central bank’s next steps amid signs of a waning economic recovery. While growth accelerated to a one-year high in the first quarter, recent data have flashed some warning signs: manufacturing activity unexpectedly contracted in April, imports plunged and export growth weakened.

Policymakers have signaled they want to maintain a pro-growth stance in the face of subdued domestic demand, high youth unemployment and weak property investment. The People’s Bank of China may have scope to ease monetary policy further if necessary, since more banks have cut deposit rates recently and US Federal Reserve has signaled a potential pause in rate hikes.