Cool­ing in­fla­tion prompts calls for more eas­ing

China Daily (Canada) - - NEWS CAPSULE -

Con­sumer in­fla­tion came in weaker than ex­pected in Oc­to­ber while prices at fac­tory gates fell for a 44th straight month, fu­elling calls for more mon­e­tary eas­ing and fis­cal stim­u­lus to com­bat de­fla­tion­ary pres­sures.

The con­sumer price in­dex (CPI), the main gauge of in­fla­tion, grew 1.3 per­cent year-onyear in Oc­to­ber, the Na­tional Bureau of Sta­tis­tics (NBS) said.

The read­ing, much lower than the mar­ket forecast of around 1.5 per­cent, slowed from the 1.6 per­cent gain in Septem­ber and 2 per­cent in Au­gust. On a monthly ba­sis, con­sumer prices edged down 0.3 per­cent.

Av­er­age CPI in­fla­tion in the first 10 months of 2015 came in at 1.4 per­cent year on year, which is much lower than the gov­ern­ment tar­get of around 3 per­cent.

“The data un­der­scored sig­nif­i­cant de­fla­tion­ary pres­sures in China, which al­lows no de­lay for fur­ther eas­ing poli­cies,” HSBC an­a­lyst Qu Hong­bin said.

ZHAO JING­DONG / FOR CHINA DAILY

Heavy smog blan­kets Shenyang, the cap­i­tal of Liaon­ing prov­ince, on Mon­day. Se­vere pol­lu­tion spread rapidly this week in two other north­east­ern prov­inces — Hei­longjiang and Jilin. The con­cen­tra­tion of PM2.5 — fine par­tic­u­lates that can be haz­ardous to hu­man health — was as high as 1,400 mi­cro­grams per cu­bic me­ter at some mon­i­tor­ing sites in Shenyang.

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