BEIJING -- Inflation in China eased slightly in September, giving policymakers room to provide further economic stimulus packages as they try to stabilize the country’s sharpest slowdown since the 2008 financial crisis.
Consumer prices grew 1.9% from a year ago, down from 2% year-on-year growth in August. The gauge is closely watched because high inflation typically sows social discontent among China's massive working class.
The diminishing inflationary pressure comes after China said over the weekend that export growth and the money supply had expanded in September more than expected.
The data suggest that the world’s second-largest economy could be stabilizing after limping along for most of the year. A dramatic drop-off in demand for Chinese goods in Europe as well as a tightened domestic property market has deeply hindered China's growth momentum.