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| China's inflation rate falls to 4.2% in November | China's inflation rate falls to 4.2% in November |
| (about 1 hour later) | |
| China's rate of inflation has fallen in November to its slowest pace in 14-months. | |
| Consumer prices rose at 4.2% compared with the same month last year, the National Bureau of Statistics said on Friday. | Consumer prices rose at 4.2% compared with the same month last year, the National Bureau of Statistics said on Friday. |
| Inflation was at 5.5% in October, after hitting a three-year high in July of 6.5% | Inflation was at 5.5% in October, after hitting a three-year high in July of 6.5% |
| Analysts said this creates more room for authorities to ease monetary policy and encourage economic growth. | Analysts said this creates more room for authorities to ease monetary policy and encourage economic growth. |
| "The numbers confirmed that inflation is easing quickly in China," said Hua Zhongwei from Huachuang Securities in Beijing, | "The numbers confirmed that inflation is easing quickly in China," said Hua Zhongwei from Huachuang Securities in Beijing, |
| "As such, China's policies have to shift to the pro-growth side in a stronger and quicker way." | "As such, China's policies have to shift to the pro-growth side in a stronger and quicker way." |
| Turning point | Turning point |
| The slowing pace of inflation allows Chinese authorities to turn their policies more towards growth, as Europe's crisis starts to effect Asia. | The slowing pace of inflation allows Chinese authorities to turn their policies more towards growth, as Europe's crisis starts to effect Asia. |
| China has seen demand for its products shrink, as consumers in Europe and the US cut back on spending as growth slows in those regions. | China has seen demand for its products shrink, as consumers in Europe and the US cut back on spending as growth slows in those regions. |
| Manufacturing activity contracted in November for the first time in 33 months, data showed. | Manufacturing activity contracted in November for the first time in 33 months, data showed. |
| These indicators have increased concern that China could be headed for a slowdown as well. | These indicators have increased concern that China could be headed for a slowdown as well. |
| In what was seen as a shift in policy towards growth, China cut the amount of money banks must keep in reserve last week. | In what was seen as a shift in policy towards growth, China cut the amount of money banks must keep in reserve last week. |
| It was an attempt to free up credit and encourage lending. | It was an attempt to free up credit and encourage lending. |
| Future plan | |
| Policy makers are meeting this month to map out the direction for economic policies in 2012. | |
| "We will see some changes in the nuance of the announcement after next week's central economic work conference," said Zhou Hao from ANZ in Shanghai. | |
| "But we will see clearer signs of relaxation in what they do." | |
| China's economy expanded 9.1% in the third quarter, the slowest pace in two years. |