Chinese shares opened higher on Monday amid softer-than-expected inflation data.

The Shanghai Composite Index, the main gauge of Chinese stocks, opened 0.1% higher to 3,943.82. The Shenzhen Component Index rose 0.3% to 14,348.95.

China's annual consumer inflation decelerated to 0.5%% in July, lower than the consensus forecast of 0.8% tracked by Investing.com and compared with the 1.0% pace recorded in the previous month. It also marked the softest print in six months.

Core inflation, which excludes volatile food and energy prices, slowed to 0.9% in July from 1% in June. It was also the weakest increase in six months.

China's annual producer inflation also decelerated to 3.5% in July, below the consensus forecast of 3.8% and the 4.1% pace recorded in June.