BEIJING, China – China’s inflation rate fell further in November as the rise in food prices moderated, giving Chinese leaders room if needed to pump more stimulus into the slowing economy.
Government data on Wednesday showed consumer prices rose 1.4 per cent over a year earlier, down from October’s already low 1.6 per cent increase. Food prices rose 2.3 per cent, down from October’s 2.5 per cent.
Producer prices, measured as goods leave the factory, also fell further, declining 2.7 per cent from a year earlier.
Low inflation gives Beijing room to cut interest rates or launch new stimulus spending with less concern about setting off a price spike.
Economic growth fell to a five-year low of 7.3 per cent in the latest quarter. Beijing cut interest rates Nov. 22 in an apparent move to stop the deepening downturn.