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from Market Watch
BEIJING–China’s consumer inflation ticked up slightly in December, keeping price increases for the year well below the government ceiling, but a further slide in factory prices raised new concerns over weak demand in the world’s second-largest economy.
Analysts said that latest price data gave the central bank plenty of room to ease monetary policy further– following a surprise cut in interest rates in November–and that more aggressive measures could be taken in the months ahead.
“I think China’s deflation risks are rising and the central bank has room to ease monetary policy,” said Ma Xiaoping, economist at HSBC in Beijing.
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