China's economy shows signs of stabilisation as prices cool

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China's economy shows signs of stabilisation as prices cool
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The Chinese government has rolled out a raft of policy measures in recent weeks to spur economic growth and fend off deflation pressures.

Core inflation, which excludes food and fuel prices, was unchanged at 0.8 percent in August. / Photo: Reuters Archive

The consumer price index rose 0.1 percent in August from a year earlier, the National Bureau of Statistics said on Saturday, slower than the median estimate for a 0.2 percent increase in a Reuters poll. CPI fell 0.3 percent in July. "There is a bit of improvement in the inflation profile. In the meantime, the PPI deflation appears to be narrowing, pointing to a slow and moderate restoring process," said Zhou Hao, chief economist at Guotai Junan International.

Food prices fell 1.7 percent on the year while non-food costs rose 0.5 percent - led by rising costs linked to tourism, the bureau said.

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