China's inflation rate falls further in November to 1.4 percent as food price rises moderate

Economic Indicators Associated Press

China's inflation rate fell further in November as the rise in food prices moderated, giving Chinese leaders room if needed to pump more stimulus into the slowing economy.

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Government data on Wednesday showed consumer prices rose 1.4 percent over a year earlier, down from October's already low 1.6 percent increase. Food prices rose 2.3 percent, down from October's 2.5 percent.

Producer prices, measured as goods leave the factory, also fell further, declining 2.7 percent from a year earlier.

Low inflation gives Beijing room to cut interest rates or launch new stimulus spending with less concern about setting off a price spike.

Economic growth fell to a five-year low of 7.3 percent in the latest quarter. Beijing cut interest rates Nov. 22 in an apparent move to stop the deepening downturn.