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Earlier this week, Beijing cut its GDP growth forecast for 2012. And now, closing out the week, news that consumer prices in China have fallen to a 20-month low. Analysts say that this downturn in consumer prices will aid policymakers in further slowing economic growth.
Based on the inflation data, most project a soft landing, but others expect the Chinese economy to land hard at nearly zero growth for 2012. The pessimists doubt the official story coming out of Beijing, pointing instead to underperforming factory output – the weakest since July 2009.