China's consumer price index (CPI) rose just 1.0% year-on-year in June, edging lower as cooling energy and commodity prices dampened headline inflation.

The official data, released Wednesday, indicates that domestic demand remains subdued despite ongoing policy support.

The modest inflation print reflects the drag from lower energy costs, which have offset price increases in other categories.

This dynamic highlights the fragility of consumer spending in the world's second-largest economy, where deflationary pressures have lingered for months.

Markets are closely watching how the People's Bank of China will respond to the weak inflation data.

The central bank has signaled a willingness to maintain accommodative monetary policy, but the extent of further easing remains uncertain.