China's Inflation Rate Holds Steady; Concerns Over Growing Debt Overshadow Slowing Growth
China's inflation remained tepid in January, but economists said the country's central bank still has little room to ease monetary policy as concerns over growing debt overshadow slowing economic growth.</br></br>China's consumer-price index rose 2.5% year-over-year, data released by the National Bureau of Statistics on Friday showed, matching December's pace. Economists had expected a slightly lower figure, but on Friday said January's figure was still mild.</br></br>China's CPI typically spikes around the Lunar New Year holiday, which fell at the end of January, but this year muted food prices helped to keep overall inflation modest. A stronger Chinese yuan has also helped push down the prices of imported goods, said Bill Adams, an economist at U.S.-based PNC Financial Services.</br></br>Consumer inflation could pick up somewhat later this year, averaging 3% in 2014, according to estimates by J.P. Morgan. Still, that would be easily within the government's stated tolerance of 3.5%.</br></br>Despite a slowing economy and tepid price rises, the central bank is unlikely to cut interest rates or tone down its commitment to slowing the growth of credit, experts said.