2009年1月29日星期四

China not entering deflation

China's consumer price index (CPI), the main gauge of inflation, rose 1.2 percent year-on-year in December, the eighth consecutive month of deceleration and the slowest rise since July 2006.
The CPI was 2.4 percent in November, and it hit a 12-year-high of 8.7 percent in February.
The producer price index (PPI), a measure of inflation at the wholesale level, fell 1.1 percent in December after rising 2 percent in November and a 12-year-high of 10.1 percent in August.
The retreat in inflation has prompted some economists to call for more government measures to avert a coming deflation, as it could raise real interest rates and discourage business investment to make the economic situation worse.

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