China faces increasing deflationary risks as its consumer price index (CPI), a major gauge of inflation, slows to a record low of 1% in January.

The trend of continuous decline of the CPI reading has lasted nine months, and the latest is 0.2 percentage points lower than the previous month.

The data was released by the National Bureau of Statistics (NBS) on February 10, also released was the producer price index (PPI).

China's PPI registered a year-on-year decrease of 3.3%, sliding 2.2 percentage points further from the December level.

The NBS stated that the on-going global financial crisis was a major contributor to the sharp deceleration of PPI, as prices of crude oil, minerals and food plunged.

The deceleration in CPI and PPI indicated that China would likely face increasing deflationary risks in the following months.