Consumer prices stabilized last September, after rising 0.1 percent in August on an annual basis.
The return of consumer prices to deflation in October indicates China’s need for more stimulus to support growth in light of the challenges of weak demand facing the world’s second-largest economy..
Data issued on Thursday showed that consumer prices also decreased on a monthly basis by 0.1 percent, against expectations of stability, after they rose 0.2 percent in September..
Last October, the Governor of the People’s Bank of China, Pan Zongxing, said in a report that China will promote sustainable economic recovery by focusing on expanding domestic demand while avoiding financial risks..
Ban said in the report published on the bank’s website that the central bank will make its policy more “accurate and effective” while directing financial institutions to reduce real lending interest rates and reduce financial costs for companies and individuals..
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