China’s Inflation Slowdown Fuels Calls for More Policy Stimulus
- Consumer, producer inflation data easing amid Covid lockdowns
- Analysts say central bank has scope to cut interest rates
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China’s consumer and producer inflation slowed in August as sporadic lockdowns suppressed spending and commodity prices fell, giving policy makers enough room to support the troubled economy if needed.
The consumer price index rose 2.5% from a year earlier, the National Bureau of Statistics said Friday, down from 2.7% in July and weaker than the 2.8% median forecast in a Bloomberg survey of economists. Factory-gate inflation slowed to 2.3% from 4.2% in July, lower than the 3.2% predicted in the survey.