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China May Consumer Prices -1.4%, Producer Prices -7.2%

By   || June 10, 2009 at 02:35 GMT
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China’s consumer prices fell 1.4% yoy in May, the fourth consecutive month of deflation. Expectations were for a fall of 1.3%.

China’s producer prices fell 7.2% in the year to May, much greater than the forecast of 6.8%. However most economists are relaxed about the fall, seeing it as a statistical correction of the surge in food and industrial commodity prices in 2008, rather than a sign of economic contraction.

No real movements in currency markets on the back of these numbers.

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