There is no deflation in China and there will be no deflation in the future, a spokesman of China's statistics bureau said on Tuesday.

China's economic recovery faces challenges, National Bureau of Statistics spokesperson Fu Linghui told a press conference in Beijing.

Still, the bureau expects a decline in producer price index to moderate further, according to Fu.

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China's consumer sector tipped into deflation and factory-gate prices extended declines in July, official data showed.

Fu also said that risks for property developers could be gradually resolved due to policy optimisation.