Inflationary pressures have risen in China as investors seek more stimulus for the economy

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China's inflationary pressures rose in September due to weaker-than-expected consumer and factory prices, prompting Beijing to deliver a big package to lift the economy.

The softer data came as volatile markets in China awaited more details on Beijing's stimulus plan, following a finance ministry news conference on Saturday that promised more spending but offered few new figures.

China's consumer price index rose 0.4 percent year-on-year in September, the National Bureau of Statistics said Sunday, weaker than a Bloomberg poll of analysts that had forecast a 0.6 percent rise and down from 0.6 percent in August.

The producer price index fell 2.8 percent on the year, compared with analysts' forecast of a 2.6 percent decline. The decline accelerated from 1.8 percent in August and was the biggest decline in six months.

Goldman Sachs said consumer price inflation was supported by rising food prices, which were affected by adverse weather and seasonal demand ahead of the Golden Week holiday that begins on October 1.

The weak inflation reading highlights how China's economy is suffering from inflationary pressures stemming from a deepening property crisis that has hit household demand.

They come ahead of official data scheduled for release this week that is expected to paint a picture of a two-speed economy, with strong trade numbers to be offset by weak third-quarter gross domestic product figures on Friday.

Economists expect China's third-quarter GDP to grow less than Beijing's official target of 5 percent a year.

Analysts have warned that if growth slows further and China's export engine begins to hit more obstacles such as protectionism from key trading partners, policymakers will need to take further action.

“If the two-speed model [can] Don't carry on, policymakers [will] Policy stimulus should increase,” said Larry Hu, economist with Macquarie, in a note.

After months of incremental steps, the central bank announced stronger monetary stimulus in late September ahead of a national holiday, sparking a rally in China's long-delayed stock market.

Investors have been waiting for details on Beijing's plans for additional fiscal spending to back up fiscal stimulus but have been disappointed by the lack of detail in subsequent government announcements.

Analysts said that while markets want the government to present a more assertive stance on stimulus, Beijing will try to avoid flooding the market with credit. Past stimulus efforts are blamed for creating a property market bubble.

The focus is on the next leadership meeting of the National People's Congress, China's rubber-stamp parliament, which would technically have to approve any additional spending plans. A meeting is expected to take place in the next few weeks.

The statistics bureau said weak producer prices were driven by the “ferrous” metal smelting and rolling industry, down 11 percent year-on-year, and the gasoline, coal and other fuel processing industries down 9.4 percent. Factory prices of consumer goods also fell by 1.3 percent.

As for consumer prices, the bureau said prices for “new energy vehicles” — electric vehicles — and traditional engine cars fell by 6.9 percent and 6.1 percent, respectively.

China's automotive market is characterized by intense competition and excess capacity, leading many manufacturers to increase exports at lower costs.