Chinese Data allows more room to Boost Stimulus

China’s inflation stayed subdued in July while factory-gate prices fell for a 17th month, giving Premier Li Keqiang more room to boost stimulus should an economic slowdown deepen.

The consumer price index rose 2.7 percent in July from a year earlier, the National Bureau of Statistics said today in Beijing. That was less than the 2.8 percent median estimate in a Bloomberg News survey and the government’s full-year target of 3.5 percent. Producer prices fell 2.3 percent after a 2.7 percent drop the previous month.

The reports reflect a growth deceleration that’s left the world’s second-largest economy poised for the weakest expansion in 23 years. China last month announced what Bank of America Corp. called a “small stimulus” while pursuing reforms that include ordering more than 1,400 companies in 19 industries to cut excess production capacity this year.


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