China’s consumer inflation edged higher in April while factory prices continued to slide, pointing to a continued rocky recovery in the world’s second-largest economy as Beijing battles lagging consumer demand and global trade tensions.

China's consumer prices rose for a third straight month in April, while producer prices extended declines, signalling an improvement in domestic demand, as Beijing navigates challenges in its bid to shore up a shaky economy.

BEIJING—China’s consumer prices edged up modestly in April while its factory-gate prices continued to fall, underscoring the challenges that policymakers face in shaking off disinflationary pressures despite stimulus measures aimed at delivering a jolt to the economy.