China inflation down to 2.4%

China’s consumer price inflation fell to a 22-month low of 2.4% in November, giving the central bank free rein to cut interest rates further to offset an abrupt slump in the world’s fourth largest economy.

Economists had expected inflation to moderate to 3% from 4% in the year to October. In the event, the reading was the lowest since January 2007.

In further signs that price pressures are fading fast, annual non-food inflation – considered a less volatile gauge of underlying conditions – fell to 0.6% in the year to November from 1.6% in the 12 months to October.

And between October and November, consumer prices fell 0.8%, the National Bureau of Statistics reported.