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China factory inflation eases

The CPI drop was mostly driven by the decline in food prices, while PPI fell because the base last year was too high


China’s factory inflation moderated as consumer price gains remained tepid, further reducing a potential source of pressure for policy makers to boost borrowing costs. While this year’s surge in raw-materials prices will feed through to consumer products next year, headline factory price growth is seen slowing amid higher year-ago base comparisons and moderating investment demand. As top leaders step up pledges to ensure financial stability amid soaring debt, economists say moderate inflation and an outlook for tame price gains gives the authorities less cause to pursue ...

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First Published: Sun, December 10 2017. 01:25 IST