Consumer price inflation in China hit its lowest level since 2006 in January, Bloomberg reported. Consumer prices rose 1% in January over the same period a year ago, having risen 1.2% year-on-year in December. Economists suggest that even lower inflation – and even deflation – was held at bay by increased consumption surrounding the Lunar New Year holiday. Producer prices contracted in January, falling 3.3% year-on-year after falling 1.1% year-on-year in December. The numbers have prompted speculation that the central bank may face increasing pressure to lower interest rates in the near future.