China’s consumer inflation hugged a seven-month low in January and showed no signs of accelerating anytime soon, a consolation for the government which may need to loosen policy should economic growth founder.
But in a sign the world’s No. 2 economy faces continued headwinds, producer prices fell again in January in an uninterrupted decline that has lasted for nearly two years. 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 on Friday. Consumer prices, on the other hand, were up 2.5 percent, level with December and slightly above market expectations.