(MENAFN) adding to serious doubts about increasing deflation risks in the world's second-largest economy, China's consumer inflation barely edged up in Dec while firms' factory-gate prices continued to decline.
Accordingly, China's consumer inflation accelerated marginally to 1.6 percent y-o-y over the cited month, as opposed to 1.5 percent throughout the previous month, which was in line with the already sluggish activity.
Moreover, the nation's industrial division contracted for a fifth straight month in December and factories continued to slash jobs, reducing hopes that the economy will enter 2016 on steadier footing.
Basically, this intensifying bad situation and the risk of entrenched deflation is a nightmare for China, which desperately wants to avoid becoming stuck in a trap where falling prices sap economic vitality.
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