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1st Ld-Writethru: China not in deflation: Premier Li

Xinhua, March 15, 2015 Adjust font size:

China is not in a deflation, and is not exporting deflation to other parts of the world, Premier Li Keqiang said Sunday at a press conference following the conclusion of the annual parliamentary session.

"I don't think there is a deflation in China," Li said, citing the country's inflation figures in the past two months, and referring to a major global criterion that defines deflation as consecutive negative growth of overall consumer prices.

China's consumer price index (CPI), the main gauge of inflation, quickened from the 0.8-percent gain in January to grow 1.4 percent year on year in February, official data showed.

Li stressed that China is not exporting deflation to other countries. On the contrary, he said "we are an receiving end of deflation."

The premier cited that China imported more volumes of crude oil and iron ore last year, with smaller total value, due to the tumbling commercial commodity prices.

"We are prepared to cope with such a situation," he said.

Li also expressed hopes to see a quicker global recovery. Endi