China's CPI eases in May while producer prices recover

Beijing

DEFLATIONARY pressures in China eased further in May, relieving some pressure on cash-strapped companies, but consumer inflation was cooler than expected, suggesting the central bank will keep policy supportive in coming months but be in no hurry to cut interest rates further.

Consumer inflation rose less than forecast as pressure from high food prices eased, while producer prices recovered more than forecast, the statistics bureau said on Thursday.

The consumer price index (CPI) rose 2.0 per cent year-on-year in May, compared with a 2.3 per cent increase in April. Food prices were up 5.9 per cent year-on-year i…