China January inflation hits 5-year low; strengthens case for more policy easing

China's annual consumer inflation hit a five-year low in January while factory deflation deepened, underscoring persistent weakness in the economy and heaping more pressures on policymakers to step up their efforts to support growth. The risk of deflation is rising as the world's second-largest economy faces headwinds from a property market downturn and widespread factory overcapacity, and the situation may have been worsened by falling global commodity prices, analysts say.

The consumer price index rose 0.8% in January.

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