China's Dec inflation falls to 7-month low at 2.5%

CHINA's inflation rate fell to a seven-month low in December on the back of easing food prices, reducing the odds of monetary tightening.

The consumer price index (CPI) eased to 2.5 per cent in December from 3 per cent the previous month. This was well below the 3.5 per cent target set by the government and a touch lower than economists' forecast of 2.7 per cent.

Inflation stood at 2.6 per cent last year, while food prices rose 4.1 per cent year on year in December, slowing from November's 5.9 per cent increase, data released yesterday by the National Bureau of Statistics showed.