China’s consumer price index rose 0.8% in January year-on-year, marking a five-year low for consumer inflation, Reuters reported, citing the National Bureau of Statistics. “Today’s data confirmed the economic slowdown in January, while intensifying disinflation will weigh further on firms’ profit margins,” said Julia Wang, Greater China economist at HSBC. “This increases the need for further monetary easing. We continue to expect another 25 [basis point] cut to the policy rate in Q1.” Analysts also said that factory deflation remains a big worry.
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