China's consumer and producer prices drop in 2014
Beijing (AsiaNews/Agencies) - China's inflation rate continues to fall, reaching a five-year low. Although expected, the drop indicates a weakening of the Chinese economy. Now, economists warn of deflationary threats, calling for more monetary stimulus to boost slowing growth
In December, the consumer price index (CPI) rose 1.5 per cent year on year, this according to the latest announcement by China's National Bureau of Statistics.
As forecast, the CPI rose by 0.3 per cent in a month. This is symptomatic of the decline of the past few years. Inflation stood at 2.6 per cent in 2013, like a year earlier. It had been 5.4 per cent in 2011.
Similarly, the producer price index (PPI) dropped by 3.3 per cent year on year, a decline larger than the 3.1 percent median forecast. This is the biggest fall since September 2012, and is greater than expected, largely due to lower oil prices.
Overall, China's inflation in 2014 was 2 per cent, well below the government's target of 3.5 per cent. For its part, the PPI fell last year by 1.9 per cent, for the 34th straight month.