China's Inflation Falls as Economy Slows

With China's Industrial Production Index falling to its slowest rate in two years, inflation has also declined coming in at 4.2 percent in November from 5.5 percent the previous month. The outlook remains muted due as economic conditions deteriorate in Europe and this has analysts expecting the Bank of China to ease financial policy to boost activity.

“It is inevitable that credit will be eased, but in an orderly way, not like during 2008-2009,” said Mei Xinyu, a researcher with the Chinese Academy of International Trade and Economic Cooperation.

Source: The Canadian Press