Site icon China Economic Review

China inflation nears two-year low

China’s inflation in September neared its slowest pace in two years, Bloomberg reported, citing the National Bureau of Statistics. Consumer prices rose 1.9% last month compared to a year earlier. Producer prices hit a three-year low, demonstrating the continued weakness of the economy, in spite of a 9.9% jump in exports in September that surpassed analyst expectations. The central bank has used money-market operations as a primary tool to boost growth, pumping some US$80 billion into the market during September and October, while holding off on interest-rate cuts since July in the face of increased property prices. The government is targeting about 4% annual inflation in 2012. Beijing aims to hit 7.5% economic growth this year, down from 9.3% last year.

Exit mobile version