Chinese inflation edged down in September, giving the government more space to loosen monetary policy as the economy slows.
Consumer prices rose 1.9 per cent from a year earlier, slightly below August’s 2.0 per cent pace. Inflation has come down from a high of 6.5 per cent last year and analysts expect it to remain subdued for many months to come.
Meanwhile, producer price inflation dipped further into negative territory for the seventh straight month. The producer price index, a measure of the prices of goods when they leave factories, declined 3.6 per cent from a year earlier in September, a little lower than August’s 3.5 per cent fall.
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