China's headline consumer price inflation index rose 2 per cent in August from a year earlier. That was below the 2.3 per cent price increases recorded in July and less than the 2.2 per cent economists had forecast.
This headline CPI is still much lower than the official target of 3.5 per cent, however, indicating the government will maintain its relatively loose monetary policy stance.
However factory gate prices fell 1.2 per cent in August from a year earlier. That was more than the 0.9 per cent price fall recorded in July and more than the 1.1 per cent fall economists had forecast.
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