Price data send out soothing signals

A moderate CPI and deflationary PPI leaves room for more growth in the remainder of 2013

Moderate consumer inflation and narrower producer price deflation in August sent out positive signals indicating the steady growth of the Chinese economy and cheering up investors amid the implementation of supportive measures by the government.

The benign inflation figures are expected to provide more space for policy-makers to take macroeconomic adjustment steps in response to any sudden headwinds from the external environment and concentrate on structural reforms, analysts said.