Inflation in November fell to its lowest level in nearly two years as food and energy costs eased, AP reported, citing data from the National Bureau of Statistics. China’s consumer price index in November rose by 2.4% year-on-year, compared to 4% recorded in October and well below February’s 12-year high of 8.7%. Food costs, however, rose by 5.9% in November, with pork prices rising by 9.3%. The easing inflation will give the government more leeway to cut interest rates and inject money into the economy. However, analysts said the rapid fall in price growth may be dangerous as it could lead to deflation. Beijing had spent a year trying to cool inflation but has shifted its economic policy priorities to keeping up economic growth.
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