China should maintain monetary policies despite weak inflation - Securities Journal

Dhwani Mehta FXStreet

China should maintain its current monetary policy stance, despite registering negative price pressures in November, as the weakening inflation was largely caused by falling food prices while core demand remains strong, the China Securities Journal reported on Thursday, citing economists.

“The PPI may strengthen in December and return to positive by Q1 after recording -1.5% in November, supported by stronger domestic demand,” the Chinese press added.

China's November Consumer Price Index (CPI) came in weaker at -0.5%, the first decline since Oct 2009.

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