Investing.com -- China's producer price inflation eased more sharply than expected in July, while consumer inflation also slowed as weaker energy prices and soft domestic demand reduced price pressures, Reuters reported on Sunday, citing official data. The producer price index increased 3.5% from a year earlier, according to data from the National Bureau of Statistics. Economists surveyed by Reuters had expected factory-gate prices to rise 3.8%. "Consumer and producer inflation weakened in July," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. Related articlesChina factory-gate inflation slows more than expected in JulyPentagon asks defence firms to accelerate weapons productionGermany warns of constant hybrid attack threats after drone incident