Deflationary pressures persist, food prices the major drag
Consumer and producer prices both register annual declines
Analysts urge more strong policy support to revive confidence
Some warn deflation could become entrenched in consumers

BEIJING, Feb 8Reuters China39;s consumer prices fell at their steepest pace in more than 14 years in January while producer prices also dropped, ramping up pressure on policymakers to do more to revive an economy low on confidence and facing deflationary risks.

The world39;s secondbiggest economy has been grappling with slowing prices since early last year, forcing policymakers to cut interest rates to spur growth even as many developed economies were focused on taming stubbornly high inflation.

The consumer price index CPI fell 0.8 in January from a year earlier, after a 0.3 drop in December, data from the National Bureau of Statistics NBS showed on Thursday. The CPI rose 0.3 monthonmonth from a 0.1 uptick the previous month.

Economists polled by Reuters had forecast a 0.5 fall yearonyear and a 0.4 gain monthonmonth.

The annual CPI decline in January was the biggest since September 2009, mainly led by a sharp drop in food prices, but analysts warn the overall deflationary impulse in the economy risks becoming entrenched in consumer behaviour.

The CPI data today shows China faces persistent deflationary pressure, said Zhiwei Zhang, chief economist at Pinpoint Asset Management.

China needs to take actions quickly and…