Consumer inflation in China dropped to 3.2 per cent from a year ago in February, down from 4.5 per cent in January and the lowest since June 2010.
With stubbornly high inflation now apparently under control, Beijing is expected to shift its attention to supporting growth in the world’s second-largest economy, which is showing signs of slowing more than expected.
The Chinese government identified tackling inflation as its main task last year and, through a combination of successive interest rate increases and hikes in the reserve requirement for banks, it managed to bring rapid price rises under control by the fourth quarter.
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