China’s consumer inflation eased to a four-month low in August while factory-gate prices extended their decline to 30 months, adding room for government stimulus to support the economy amid a property slump.
The consumer price index rose 2 percent from a year earlier, the National Bureau of Statistics said in Beijing today, compared with the 2.2 percent median estimate in a Bloomberg News survey and 2.3 percent in July. The producer price index fell 1.2 percent, compared with projections for a 1.1 percent drop.
Today’s data add to signs of weakness in domestic demand after figures this week showed declining imports and a slowdown in money-supply expansion, bolstering the case for additional measures to support the economy. Premier Li Keqiang reiterated yesterday that China won’t have a hard landing and has confidence in achieving key development goals for 2014, with a growth target of about 7.5 percent.