Inflation & Prices

China’s Economy Under Pressure as Inflation Drops at Fastest Pace in 14 Years

  • Producer prices fall for 16th month in sign of weak demand
  • China has been beset by falling prices for much of last year
WATCH: Helen Qiao of BofA Global Research discusses what the latest inflation figures say about the state of China’s economy and its outlook.Source: Bloomberg
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China’s consumer prices fell last month at the fastest pace since the global financial crisis, piling pressure on the government to step-up support for a stumbling economic rebound that’s roiling markets.

The consumer price index dropped 0.8% in January from a year ago, the National Bureau of Statistics said Thursday, the weakest since September 2009. The drop was worse than economists’ expectations for a 0.5% decline.