[QODLink]
Business
China inflation falls to 14-month low at 4.2%
Rate is still above government target of four per cent and increases concerns that economy may be headed for a slowdown.
Last Modified: 09 Dec 2011 09:41
The increase of inflation over the past 14 months has seen the price of food increase in China [Reuters]

China's consumer prices rose at their slowest pace in more than a year in November, as policy makers meeting this month to map out the direction for economic policies in 2012.

The country's consumer price index, a key gauge of inflation, rose 4.2 per cent, the National Bureau of Statistics said in a statement on Friday.

The rate was well below the 5.5 per cent recorded in October, but still slightly above the government's annual target of  four per cent.

It was the slowest pace since September 2010, when inflation stood at 3.6 per cent.

China last week cut the amount of money banks must hold in reserve for the first time in three years to spur lending and counter the turmoil in Europe and the US that threatens to derail the world's second-largest economy.

The move was seen as an attempt to free up credit and encourage lending.

Export-driven China has seen demand for its products shrink in recent months as consumers from Europe and the US cut back on spending due to the increasingly bleak economic outlook.

Manufacturing activity in China contracted in November for the first time in 33 months, official data showed last week, fuelling concerns the economy was at risk of a hard landing which could trigger massive job losses.

Source:
Agencies
Topics in this article
Country
Organisation
Featured on Al Jazeera
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
Israel's Operation Protective Edge is the third major offensive on the Gaza Strip in six years.
Muslims and Arabs in the US say they face discrimination in many areas of life, 13 years after the 9/11 attacks.
At one UN site alone, approximately four children below the age of five are dying each day.
Featured
More than fifty years of an armed struggle for independence from Spain might be coming to an end in the Basque Country.
After the shooting-down of flight MH17, relatives ask what the carrier has learned from still-missing MH370.
Human rights and corporate responsibility prompt a US church to divest from companies doing business with Israel.
Afghan militias have accumulated a lengthy record of human-rights abuses, including murders and rapes.
Growing poverty is strengthening a trend among UK Muslims to fund charitable work closer to home.
join our mailing list