Home / Business / UPDATE 1-China Oct acceleration hovers nearby 5-year low, deflation risks seen growing

UPDATE 1-China Oct acceleration hovers nearby 5-year low, deflation risks seen growing


(Adds researcher quote, details)

BEIJING Nov 10 (Reuters) – China’s annual consumer
inflation remained during a nearby five-year low in Oct during 1.6
percent, serve justification that a world’s second-largest
economy is cooling and giving room to policymakers to stimulate
growth if needed.

Analysts polled by Reuters had approaching annual consumer
inflation to be 1.6 percent in October, a same as September,
which was a weakest reading given Jan 2010.

On a monthly basis, consumer acceleration was prosaic in October,
the National Bureau of Statistics pronounced on Monday. That compared
with 0.1 percent approaching by economists.

The writer cost index fell 2.2 percent from a year ago,
its 32nd uninterrupted decline, as indolent direct tempered the
pricing energy of companies.

The marketplace had approaching a 2.0 percent tumble in producer
prices after a dump of 1.8 percent in September.

Facing ascent risks to expansion and rising risks of
deflation, Beijing is widely approaching to continue rolling out a
steady tide of impulse measures in entrance months, yet most
economists trust it will reason off on some-more assertive action
such an seductiveness rate cut unless conditions neatly deteriorate.

“We consider a economy is confronting rising downward vigour and
deflation risks,” pronounced Li Huiyong, economist during Shenyin Wanguo
Securities in Shanghai.

“The worsening PPI weighed on a production industry,
providing some-more justification that China’s mercantile expansion will under
pressure in 2015. Policymakers should take some-more measures to
boost a economy.”

China’s executive bank affianced on Thursday to say modest
policy support to assistance a economy in a nearby tenure though stressed
that it will not inundate markets with cash.

An central consult expelled final week showed that the
services zone grew during a slowest gait in 9 months in
October as a cooling skill zone weighed on demand, adding
to signs of infirmity in a economy. A identical consult found
factory activity fell to a five-month low.

(Reporting by Judy Hua, Shao Xiaoyi and Koh Gui Qing; Editing
by Kim Coghill)

Article source: http://www.reuters.com/article/2014/11/10/china-economy-inflation-idUSL4N0SX29G20141110

Scroll To Top