China August inflation eases to 2.0% on-year: govt

A file photo shows people shopping for produce at an outdoor vegeteable stall in Beijing in 2010. Inflation has slipped to a four-month lowThe National Bureau of Statistics also said in a statement that over the first eight months of the year the consumer price index — a main gauge of inflation — rose 2.2 percent year on year. The figures come at a time of concern over China’s economy as the effects of mini-stimulus measures this year to prop up slowing growth have waned and fears of a bust in the property sector intensify. Moderate inflation can be a boon to consumption as it encourages consumers to buy before prices go up, while falling prices encourage shoppers to delay purchases and companies to put off investment, both of which can weigh on growth.

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