Chinese inflation tame, producer prices fall again

2014-02-14 206

Inflation in China was close to its lowest in seven months in January.

Consumer prices were up 2.5 percent from a year earlier, the same as December.

Month-on-month, inflation rose by a slightly more than expected 1.0 percent.

The stats will help the Beijing government, which may need to introduce some stimulus measures this year to keep economic growth from slowing too much.

More worrying for policymakers was a drop in producer prices – that is at the wholesale level.

They declined again in January in an uninterrupted slide that has lasted for nearly two years indicating falling demand for China’s goods.

Prices of raw materials and means of production all dropped across the board.

Producer prices slid for the 23rd consecutive month by 1.6 percent from a year ago, the National Bureau of Statistics said.