BackChina inflation misses estimates, giving room for further easing
The CPI rose 1.5% from a year earlier; producer-prices index fell 4.6%, extending a record stretch of decline
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Beijing: China’s consumer prices rose less than economists forecast in April, suggesting the central bank may need to add to its recent monetary easing to spur a pickup in domestic demand.
The consumer-prices index rose 1.5% from a year earlier, compared with the median estimate of 1.6% in a Bloomberg News survey of analysts, a release from China’s statistics authority showed in Beijing. The producer-prices index fell 4.6%, extending a record stretch of declines.
The central bank has cut benchmark interest rates and the required deposit reserve ratio twice in the past six months to aid growth. Central bank chief Zhou Xiaochuan has flagged the risks of deflation in an economy that last quarter expanded at the weakest pace since 2009.
China’s exports unexpectedly fell 6.2% in yuan terms in April, the customs administration said on Friday, putting additional pressure on growth. The government has set a CPI target of about 3% for 2015. Bloomberg
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