China’s annual consumer inflation eased to 2 percent in August, data on Thursday showed, slower than July’s 2.3 percent rise and below a Reuters poll expecting a 2.2 percent increase
Producer prices, meanwhile, continued their deflationary spiral, dipping 1.2 percent after falling 0.9 percent in July, a tad worse than the 1.1 percent fall expected. Producer prices in China have been declining since February 2012, weighed by falling commodity prices, overcapacity and weakening demand.
“I think the figures are consistent with a whole lot of data showing that the Chinese economy losing momentum again,” said Rob Subbaraman, chief economist at Nomura.
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