China's Inflation Cooled For The Fifth Straight Month

For the fifth straight month China's inflation cooled in December, which is increasing the probabilities that the government will reveal more measures to support the nation's growth.

The Chinese economy released the annual data of the consumer prices index (CPI) for December, where it retreated to 4.1% compared with the prior year's reading of 4.2%, yet it missed economists' expectations of 4.0%.

Also, the annual PPI data for December was released as well, where it recorded a retreated of 1.7%, compared with the last year's reading of 2.7%, yet it missed economists' expectations of 1.6%.
As Europe's debt crisis crimps demand for exports, the imports and exports to the lowest pace in at least two years last month, excluding seasonal distortions, and a report next week may show the world's second-largest economy expanded at the slowest pace in 10 quarters in the last three months of 2011.

The moderate is paving the way for more policy easing to stimulate the economic growth, as the nation's economic growth slows.

Economists expect another four reductions in banks' reserve requirement ratio this year to encourage lending, also expectations estimate that the inflation may slow to less than 3.5% by the second quarter.

As, during 2011 the consumer prices gained 5.4% and exceeded the government's targeted level of 4% that was estimated at the beginning of the year, yet the Policy makers haven't published an inflation goal for 2012.