China's January inflation drops to five-year low

Beijing

CHINA'S inflation dropped to a five-year low in January, official statistics showed with prices falling 0.8 per cent year-on-year, piling pressure on the central bank to further loosen monetary policy.

Analysts had expected CPI to increase one per cent monthly, according to a Bloomberg estimate.

While some of the decrease is due to seasonal factors - such as Chinese New year which distorts …