This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-20263978

The article has changed 4 times. There is an RSS feed of changes available.

Version 2 Version 3
China inflation rate dips to 1.7% China economy: Latest numbers add to recovery hopes
(about 1 hour later)
China's inflation rate dipped further in October, giving more room to policymakers to implement stimulus measures to spur growth. China has reported encouraging economic data, indicating that growth in the world's second-largest economy may be rebounding.
Consumer prices rose 1.7% from a year earlier, the slowest pace since January 2010. Industrial production, retail sales and fixed-asset investment all rose more than expected in October, from a year earlier.
China has been urged to cut interest rates to boost domestic demand in order to offset a fall in export demand and reverse a slowdown in economic growth. Meanwhile, the inflation rate fell, giving room to policymakers to employ stimulus measures to support growth.
China's growth rate hit a three-year low in the second quarter. The numbers come as China's growth rate has hit a three-year low.
Zhang Zhiwei, chief China economist at Nomura said the inflation rate was lower-than-expected and consumer price growth was no longer the main concern for the policymakers. Factory output rose 9.6%, while retail sales jumped 14.5%, indicating that domestic demand was holding up.
"So policy easing will likely continue for this quarter to support growth's recovery," he added. The growth in domestic consumption is key for China's economy, as demand for its exports - one of the biggest drivers of its growth until 2008 - has taken a back seat amid a slowdown in its main markets of the US, Europe and Japan.
'Room to proceed' Growth support
China has already taken various measures to boost its economic growth. Prompted by a decline in foreign sales and continued slowdown in its economy, China's policymakers have taken various steps to boost its domestic consumption this year.
The government has cut interest rates twice since June and also lowered the amount of money that banks need to keep in reserve three times in the last few months to boost lending. The government has cut interest rates twice since June and also lowered the amount of money that banks need to keep in reserve on three occasions in the last few months to boost lending.
In a further bid to boost domestic consumption, Beijing has approved new infrastructure projects worth more than $150bn (£94bn). In a further bid to raise domestic spending, Beijing has approved new infrastructure projects worth more than $150bn (£94bn).
Analysts said that while while China was unlikely to announce a major stimulus programme, the low inflation rate meant that they could continue to boost the existing measures without having to worry about their impact on consumer prices. Analysts said that while China was unlikely to announce a major stimulus programme, the low inflation rate meant that the government could continue to boost the existing measures without having to worry about their impact on consumer prices.
"Clearly the lower inflation rate gives them room to proceed with more stimulus measures and growth drivers," Fraser Howie, co-author of Red Capitalism told the BBC. Consumer prices grew by 1.7% from a year earlier, the slowest pace since January 2010.
"Clearly the lower inflation rate gives them room to proceed with more stimulus measures and growth drivers," Fraser Howie, co-author of Red Capitalism, told the BBC.