The Chinese economy has experienced a slowdown of late, and it is finally having an impact on inflation. After four consecutive months of dropping inflation figures, prices rose in August. According to the government’s National Bureau of Statistics, the annual inflation rate in China rose 2 percent, up from 1.8 percent in July.

Food prices rose 3.4 percent in August, which is significant since most Chinese households spend the bulk of their income on food. Nonetheless, the inflation rate is still low, which allows the government to be more flexible in pursuing its options regarding an economic stimulus, according to CNN.

In July, Chinese officials reported that annual growth of the economy fell to 7.6 percent in the second quarter, a drop from 8.1 percent in the previous quarter, CNN reported. The central bank has lowered interest rates twice and it has also tried to spur growth by limiting the amount of cash that banks can hold in reserve, according to CNN.