PARIS: European shares inched higher on Monday with the travel & leisure sector leading gains, helping to limit the impact of weak inflation data from China that highlighted sluggish demand in the world’s second-largest economy.

The pan-European STOXX 600 index ended 0.2% higher after recording its worst weekly performance in almost four months on Friday.

European travel & leisure stocks gained 1.3%, attempting to rebound from falls of over 4% last week. The index was among top decliners last week.

“Equities recover in Monday trading,” said Chris Beauchamp, chief market analyst at online trading platform IG.

“Friday’s gloomy atmosphere has faded to an extent today and stocks have attempted to regain some lost ground.” Data on Monday showed China’s producer prices fell at their fastest pace in over seven years in June, while consumer prices teetered on the edge of deflation, adding to the case for more stimulus to revive demand. China-exposed miners slid 0.6% as metal prices dipped. “While inflation shows signs of stubbornness in other economies, disinflationary forces are at work in China,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.