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China deflation fears grow on biggest producer price dip in 6 years

PPI down 5.9% in August from a year ago, its 42nd straight month of decline

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CHOOSING THE BEST: Economists believe China's surprise currency devaluation of nearly 2 per cent in mid-August will have little impact on inflation in the near term, in comparison with the effect of sharply lower commodity prices.

Beijing

CHINA'S manufacturers slashed prices at the fastest rate in six years in August as commodity prices fell and demand cooled, signalling stubborn deflation risks in the economy and adding to expectations for further stimulus measures.

The producer price index (PPI) fell 5.9