China CPI posts biggest drop since 2009

China's consumer prices have posted the biggest drop in more than 14 years, adding to deflationary pressure on the world's second-largest economy.

The National Bureau of Statistics said on Thursday that the consumer price index fell 0.8 percent in January from a year earlier.

That is the steepest decline since September 2009, when the country was reeling from the fallout of the global financial crisis.

The index fell for a fourth month in a row, partly due to declines in food prices including pork.

Consumers are tightening their purse strings, resulting in prices of automobiles and smartphones also being marked down. Sluggish home sales have resulted in cheaper furniture and home appliances.

The producer price index which tracks the change in prices of goods at factory gates fell 2.5 percent in January, marking a 16th straight monthly decline.