Chinese consumer inflation fell in November to 4.2 per cent from a year earlier, a steep decline from 5.5 per cent in October and well below the three year peak recorded in July.
Controlling surging prices has been the main economic policy goal for the Chinese government since the start of the year but November’s reading will provide Beijing with greater leeway to prop up slowing growth.
The Chinese manufacturing sector contracted last month for the first time in nearly three years and export growth to Europe and the US, China’s two largest trading partners, has dropped off in recent months.
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