CPI sees slow­est pace in two years

China Daily (Canada) - - NEWS CAPSULE -

China’s con­sumer price in­dex, a key gauge of re­tail in­fla­tion, rose 0.8 per­cent last month, the slow­est growth in two years, due to the dis­tor­tion caused by the tim­ing of the Chi­nese Lu­nar New Year.

An­a­lysts said the low con­sumer in­fla­tion re­duces the pos­si­bil­ity of China tight­en­ing its mon­e­tary pol­icy and leaves room for pol­i­cy­mak­ers to fo­cus on risk pre­ven­tion.

Am­ple sup­ply of veg­eta­bles and sag­ging de­mand for meat and other con­sump­tion items af­ter the Lu­nar New Year hol­i­day led to a “marked drop” in food prices in Fe­bru­ary, said a state­ment from the Na­tional Bureau of Sta­tis­tics.

The high base of cal­cu­la­tion last Fe­bru­ary, in which the Chi­nese New Year took place, con­trib­uted to the low read­ing last month, the state­ment said.

Core CPI, which ex­cludes en­ergy and food prices, re­mains sta­ble, said the bureau.

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