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Factory deflation gets closer, more and more call for interest rate cut

(The article has 720 words)

China’s producer inflation decelerated sharply in the last month of 2018 to hit the lowest growth in two years, bringing the threat of a factory deflation even closer to the world's second largest economy. More and more believe that the authority should take more aggressive steps to arrest a sharp economic slowdown and interest rate cuts should be put on the agenda as soon as possible.

The Producer Price Index (PPI) which measures factory-gate price increases, rose 0.9 per cent in December from a year . . .

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