China’s inflation rate slows to near five-year low
The inflation rate in China slowed more than expected in September to a near five-year low, adding to concerns that global growth is cooling.
China’s inflation rate slowed more than expected in September to a near five-year low, adding to concerns that global growth is cooling fast unless governments take bolder measures to shore up their economies.
The consumer price index (CPI) rose 1.6 percent in September from a year earlier, the National Bureau of Statistics said on Wednesday, missing market expectations for a 1.7 percent rise and down from 2 percent in August.
The CPI rose 0.5 percent in September from the previous month, versus a 0.4 percent gain expected by economists.
“Easing gains (in) non-food prices and the worsening PPI provide more evidence of a weakening economy, which means the problems of weak domestic demand and over capacity are more severe than expected,” said Li Huiyong, an economist at Shenyin & Wanguo Securities in Shanghai.
“We expect policymakers will take more measures to stabilise the economy. The possibility of an interest rate cut is increasing in the coming months.”
Premier Li Keqiang said he was confident the economy would continue to grow at a “medium to high tempo”, forecasting growth of about 7.5 percent this year, which appears sharply at odds with the low inflation figure.
Source: NYT- China’s inflation rate slows to near five-year low
