Weakness in China’s Economy Even After an Increase in Exports

China’s inflation was close to the slowest pace in two years in September and producer prices fell the most since 2009, indicating weakness in the world’s second- biggest economy even after an increase in exports.

The 1.9 percent increase in consumer prices from a year earlier, reported by the National Bureau of Statistics on its website today, matched the median estimate in a Bloomberg News survey of 34 analysts and was less than August’s 2 percent gain.

The central bank has held off on interest-rate cuts since July, focusing on money-market operations as the government seeks to sustain growth without inflating property bubbles. A report on gross domestic product on Oct. 18, forecast to show a deepening slowdown, will come ahead of a once-a-decade leadership handover in the Communist Party from next month.

via Bloomberg

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