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Inflation data points to China stimulus

Easing inflationary pressure gives central bank more room to experiment with financial liberalisation

FALLING PRICES: Continued weak price increases signal a potential risk that China could tip into deflation that depresses spending and curtails employment, curbing overall growth.

Hong Kong

CHINA is increasingly likely to take new action to bolster growth, economists said, after figures released on Friday showed that inflation in the country remains near its lowest levels in five years.

Sluggish economic growth and falling prices for oil and other key