Inflation in China is close to zero

China’s consumer inflation fell further to zero, slowing for the fourth straight month, marking a setback for the government’s efforts to boost demand by injecting stimulus into the economy.

The consumer price index rose 0.1% from a year earlier, the National Bureau of Statistics said Thursday, compared with a 0.2% increase in the previous month. The average forecast of economists surveyed by Bloomberg was 0.1%.

The contraction in producer prices extended to the 27th consecutive month, although the producer price index recorded a slower decline of 2.3% compared to November. (Bloomberg)