China inflation eases sharply amid economic slowdown

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Inflation has eased sharply in China, giving policymakers more room to spur economic growth amidst a global slowdown.

Consumer price rises cooled in June to 2.2% compared to the previous year, China's statistics bureau said.

It is down from 3% in May and is well below the government target of 4%.

Dr Qian Liu, the deputy director of the forecasting service at the Economist Intelligence Unit, explained that the Chinese government is watching the figures closely.

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