The mainland's consumer price index (CPI), a main gauge of inflation, was down 0.4 percent year on year in August, according to figures from the National Bureau of Statistics (NBS) on Wednesday.
NBS statistician Dong Lijuan attributed the decline to the high comparison base from the same period last year and a rise in food prices that was below the seasonal level.
The core CPI, which excludes food and energy prices, rose 0.9 percent last month, marking the fourth straight month of increase.
NBS data also showed the producer price index (PPI), which measures costs for goods at the factory gate, went down 2.9 percent year on year last month, narrowing from a 3.6 percent drop in July.
On a monthly basis, the PPI ended its downward trend and held steady in August.
Dong noted that the changes in PPI were driven by a combination of proactive macro policies and positive changes in various industries.
For the first eight months of the year, the PPI was down 2.9 percent from a year ago. (Additional reporting by Xinhua, Reuters)