China Inflation Eased to 2 Percent in February

China’s inflation rate eased in February to 2 percent year-on-year amid signs the world’s second-largest economy might be cooling.

The consumer price rise reported Sunday by the National Bureau of Statistics was down from January’s 2.5 percent. The rise in politically sensitive food costs decelerated to 2.7 percent from January’s 3.7 percent.

Lower inflation could ease pressure on Chinese leaders as they try to focus on promised reforms aimed at making the economy more productive and keeping growth strong.

Producer prices, measured as goods leave the factory, declined by 2 percent from a year earlier. Producer price inflation has been negative for two years, reflecting excess production capacity in many industries that has led to price-cutting wars.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza