China's factory-gate inflation slowed to a three-month low in July as falling fuel prices and subdued domestic demand weighed on producer prices, while consumer inflation also cooled more than economists expected, according to data released Sunday by the National Bureau of Statistics (NBS). On a monthly basis, consumer prices declined 0.1% in July, compared with economists' expectations for a 0.2% increase, according to market forecasts cited by Reuters and other financial publications. ANZ Senior China Strategist Zhaopeng Xing said lower oil prices combined with weakening domestic demand caused both producer and consumer inflation to undershoot market expectations. Weak Domestic Demand Continues to Challenge GrowthThe inflation figures underscore the uneven nature of China's economic recovery, with manufacturing and exports remaining comparatively resilient while household consumption continues to lag. Economist Zhiwei Zhang, chief economist at Pinpoint Asset Management, said both producer and consumer inflation weakened during July, reflecting softer economic momentum during the second quarter.