China's inflation fall may lead to changes in policy

Source: China.org.cn
The CPI fell to 4.1% last month, hitting the 15-month last month. Experts believe the drop may force the government to ease its prudent monetary policy. However, fast policy easing might spark financial risk due to exorbitant money supply. Growing labour costs were the major drivers for decline in the CPI implying that monetary policies do not have to be eased too fast, said Ba Shusong, an economist at the Development Research Center.


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