China39;s deflation pressures increased in September
Consumer inflation cools, producer deflation deepens
Stronger stimulus measures needed, fiscal steps expected
BEIJING, Reuters China39;s consumer inflation unexpectedly eased in September, while producer price deflation deepened, heightening pressure on Beijing to roll out more stimulus measures quickly to revive flagging demand and shaky economic activity.
Finance Minister Lan Foan told a news conference on Saturday there will be more countercyclical measures this year, but officials did not provide details on the size or timing of fiscal stimulus being prepared, which investors hope will ease deflationary pressures in the world39;s secondlargest economy.
The consumer price index CPI rose 0.4 from a year earlier last month, the slowest in three months, against a 0.6 rise in August, data from the National Bureau of Statistics NBS showed on Sunday, missing a 0.6 increase forecast in a Reuters poll of economists.
The producer price index PPI fell at the fastest pace in six months, down 2.8 yearonyear in September, versus a 1.8 decline the previous month and below an expected 2.5 decline.
China faces persistent deflationary pressure due to weak domestic demand. The change of fiscal policy stance as indicated by the press conference yesterday Saturday would help to deal with such problems, said Zhiwei Zhang, Chief Economist at Pinpoint Asset Management.
Chinese authorities have stepped up stimulus efforts in…