China’s Inflation Pressures Ease, Adding to Rate Cut Calls

(Bloomberg) — China’s inflation pressures moderated in December as commodity prices and food costs slid, giving policy makers scope to cut interest rates to cushion the economy’s downturn.

The producer price index rose 10.3% from a year earlier, down from November’s 12.9%, while the consumer price index increased 1.5%, compared with 2.3% in November. Both came in lower than economists’ expected.