China's consumer price index(CPI) rose at their highest rate in more than eight years with inflation more than expected on the back of Lunar New Year demand and a deadly virus outbreak.

Official data shows the consumer price index, a key gauge of retail inflation, came in at 5.4 per cent last month with food prices spiked 20.6 per cent. The rise in January was the highest since October 2011 when CPI inflation was 5.5 per cent.

Beijing had already been battling a slowing domestic economy before the Novel Coronavirus emerged, disrupting businesses, travel and supply chains.