China Deflation Risk Deepens

China’s factory-gate deflation deepened and consumer prices climbed at the slowest pace since 2009, signaling room for further monetary easing.

The producer-price index dropped 2.7 percent in November from a year earlier, a record 33rd-straight decline and the biggest fall since June last year. Consumer prices rose 1.4 percent, compared with the 1.6 percent increase in October.

Falling oil and metals prices have cut costs for China’s factories, leading to lower export prices and adding to disinflation pressure across the world. China’s central bank last month cut interest rates for the first time in two years as the economy heads for its weakest full-year growth since 1990.


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