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      Subdued price levels point to more policy easing

      2015-01-09 13:00 Xinhua Web Editor: Qin Dexing
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      China's consumer inflation remained weak in December, while price declines at the factory gate level continued to deepen, suggesting weakness in the world's second-largest economy but giving policy makers more room to take easing measures.

      Growth in the consumer price index (CPI), the main gauge of inflation, rebounded to 1.5 percent in December from November's 1.4-percent rise, its slowest increase since November 2009, the National Bureau of Statistics (NBS) said Friday.

      On a monthly basis, December's CPI edged up 0.3 percent against the previous month, reversing the downward trend experienced since September.

      China's consumer prices grew 2 percent in 2014 from one year earlier, well below the government's 3.5-percent target set for the year. It was also below the 2.6-percent growth registered in 2013.

      Producer price index (PPI) slumped 3.3 percent in December from one year earlier, the sharpest fall in more than two years, and the decline deepened from November's 2.7-percent fall.

      Tumbling oil and other commodity prices have extended the run of producer-price declines to a record 34 months.

      PPI fell 1.9 percent year on year in 2014.

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