China's consumer inflation holds steady
China's inflation rate remained subdued in January, despite rising
food prices during New Year celebrations. Consumer prices held steady at
2.5% from a year earlier, which was slightly higher than what many
economists expected.
The National Bureau of Statistics said there was a 3.7% rise in food
prices during the month.
Factory gate prices fell 1.6%, marking the 23rd consecutive monthly
decline.
"Inflation is not going to be an issue in China this year," said ING
economist Tim Condon.
The latest price figures leaves room for the Chinese government to
stimulate the economy if growth drops too low. Beijing has been looking
to wean the world's second-largest economy off its dependence on exports
and become more consumer-oriented.
By keeping price pressures low, the government can focus on promised
reforms to make the economy more productive and keeping incomes rising.
China's inflation has slowed markedly since 2011, when the annual
consumer price index spiked to 5.4%.
- BBC
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