China’s Weak Inflation, Borrowing Show Economic Recovery Waning
- CPI close to zero, PPI in deflation, new loans plunge in April
- Economists debating whether central bank will add more support
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China’s consumer prices barely grew in April, while borrowing slumped, providing further evidence the economy’s recovery is waning and fueling expectations of more central bank stimulus.
Consumer inflation weakened to a two-year low of 0.1% in April, the National Bureau of Statistics said Thursday, as food and energy costs eased. The figures were partly affected by the base of comparison from last year. Producer prices fell 3.6%, largely due to lower commodity costs.