Reported from Beijing, in February, China experienced a steep fall in their inflation rate. This proved to be helpful for Beijing to pull up their economy instead.
The consumer inflation rate went down by 3.2 per cent which is reportedly the lowest in the last twenty months. Politically sensitive foods got a cost cut by 6.2 per cent, which was ven more than the former’s rate.
The World Bank and Monetary Fund have given a warning message to China and other developing countries that they must be ready for an international slowdown in the current year.
Alaistair Vhan of Moody’ Analytics said that, the February reports of china’s price data implements that the inflation is moving down gradually. So, this will help the government to ease a financial policy.
For a communist party inflation is harmful. This is because it erodes the financial profits based on which the party runs a monopoly on power.
Lei Shujie is a freelance designer. She comments that eating out at restaurants has become havoc since the restaurants have started cutting down on meal sizes to cope up with rising markets.
The World Bank had also fired a warning previously that a global slump would be on the queue, that is even more running than the 2008 disaster.