According to Nippon Capital Asset Management J-LLC, Consumer price inflation in the world’s second largest economy rose by 1.3% in October, lower than consensus forecasts for a 1.5% gain.

The data is the latest in a stream of statistical evidence pointing to the continuation of a broad-based slowdown in China’s economy despite stimulative measures taken by the People’s Bank of China. The central bank has cut interest rates six times since last November in an effort to reduce the cost of servicing debt.

It has also reduced the RRR or reserve requirement ratio for commercial banks which governs the amount of depositor capital they must hold in relation to what they lend to businesses and individuals.

“The government insists that economic growth will achieve its target of 7% but we’re paying less attention to that than we are to the data on domestic consumption,” said Charles Worth, Executive Vice-President and Co-Chief Investment Officer at Nippon Capital Asset Management J-LLC.

“We’re impressed at the way consumer spending appears to be holding up despite the gloom and doom surrounding the more traditional drivers of China’s economic growth, namely manufacturing and exports. With that in mind, we predict that the pace of economic slowing in China will decrease markedly in 2016,” he added.

Nippon Capital Asset Management J-LLC’s outlook for China contrasts sharply with its predictions for economic growth in advanced countries; specifically the United States which it warns is facing a slowdown that will almost certainly force the US Federal Reserve to introduce more stimulus at some point in 2016.

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