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China's April inflation stable, tempering fears of deflation

Its Producer Price index falls 3.4 per cent from a year ago, as factories drop prices to run down stocks

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There are signs that liquidity is not trickling down to the end-user and is instead being used to speculate on the prices of commodities. A People's Daily interview said it expects an L-shaped, not V-shaped growth.

Beijing

CHINA's inflation was flat in April from the previous two months, at 2.3 per cent, in line with analysts' expectations.

Inflation was led by a rise in pork prices as a result of bad weather and there being fewer sows. It is expected to remain under the 3 per cent target set