Easing Inflation Gives China Room

BY BOB DAVIS AND WILLIAM KAZER

BEIJING?A modest downtick in Chinese inflation could give policy makers more room to boost the world's second-largest economy, as growth continues to decelerate in China's biggest swoon since the global financial crisis.

On Thursday, China is expected to report that its GDP growth in the third quarter slid below the 7.6% it reported for the second quarter, with little evidence in sight of a quick turnaround. While China over the weekend reported a surprising boost in September exports, imports continued to grow at sluggish 2.4% pace, reflecting persistent weak domestic demand.

One of the mysteries about the Chinese economy is ...

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