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China Inflation Cooling

Easing Chinese inflation leaves room for Premier Wen Jiabao to loosen credit.

By Sophie Leung, Li Yanping, V | Updated on November 02, 2011

China’s inflation is showing signs of easing further, giving Premier Wen Jiabao more room to loosen fiscal and monetary policies as the economy cools and Europe’s sovereign-debt crisis threatens exports.

An index of manufacturers’ input costs fell the most in 17 months in October, China’s logistics federation and the statistics bureau said yesterday. A separate survey by HSBC Holdings Plc and Markit Economics also showed a decline.

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