(NBS) China’s consumer prices rose by 0.9% in January from the prior year, a slower increase compared to a 1.5% gain in December and below projections of 1.0%.
The producer prices also cooled, with an annual gain of 9.1% compared to a 10.3% increase in December and slower than projections of 9.5% growth.
Following January declines, the producer prices are now at the slowest pace in six months, even as the economy experienced a weakening property sector and new Covid-19 restrictions while Beijing initiated measures to curb rising property prices.
Sheana Yue, China’s Capital Economics analyst, says the easing inflation could offer the central bank room to ease policy as it attempts to boost the slowing economy.
Pinpoint Asset Management chief economist Zhiwei Zhang says lower inflation suggests a weak domestic demand, pointing out that although macro policies are supportive, the impacts on the economy could take longer to be felt.
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