Consumer Inflation Slows Down to a Four Year Low
Consumer inflation in China has slowed down more than the country expected in September down to a four year low which added concerns that the global growth is cooling faster unless the government will take bolder measures to shore up its economy. Consumer Price Index has increased 1.6 percent this September compared to a year earlier.
Based on by the report of the National Bureau of Statistics stated that a missed market expectation for the 1.7 percent increase and down from 2 percent in August, these reading so far was the lowest compared to reading done in January 2010 and is also due to a higher base of comparison of a year ago. Inflation has also eased in other parts of Asia from South Korea to India where the economy is also facing growing fears of deflation.
Although the price softness in China is not limited to fuel and food, data shows further downward pressure from the cooling housing market which is the largest risk that the Chinese economy is facing. Consumer Price Index also rose .5 percent in September compared to the previous month compared to the .4 percent gain that was expected by economists.
As the inflation is well below the official annual target of 3.5 percent policy makers are now enjoying ample scope to release more stimulus in top of a flurry of measures that was release earlier this year.