Growth in China\u2019s factory output and retail sales jumped to eight-month highs in November as consumer inflation bounced off 33-month lows in the latest sign that its economy is snapping out of a protracted slump, Reuters<\/em> reported.<\/p>\n Analysts said Sunday\u2019s data showed China is enjoying an enviable mix of benign inflation and rebounding economic growth that allows Beijing to stand still on monetary and fiscal policies, or switch to an easier stance if needed.<\/p>\n \u201cThe Chinese economy is now in a sweet spot and can stay in the sweet spot through the first half of 2013,\u201d said Ting Lu, an economist at Bank of America-Merrill Lynch. \u201cBeijing will be happy to sustain the current policy stance.\u201d<\/p>\n Data from the National Bureau of Statistics showed output from Chinese factories beat forecasts to climb 10.1 per cent in November from a year ago, its best performance since March.<\/p>\n Annual growth in retail sales also surprised by jumping 14.9 per cent in November, while fixed asset investment rose 20.7 per cent in the first 11 months of the year, a shade below forecasts.<\/p>\n The batch of activity data came after an inflation report out earlier on Sunday showed China\u2019s consumer price index rose 2 percent in November from a year ago \u2014 just under forecasts for a 2.1 per cent gain \u2014 as vegetable prices soared.<\/p>\n But economists said the rise in consumer prices from near three-year lows was far from worrying, especially since it is well under Beijing\u2019s annual four per cent inflation target.<\/p>\n \u201cWe expect consumer inflation to not see a big rebound until the first quarter of next year,\u201d said Jiang Chao, an analyst at Guotai Junan Securities in Shanghai.<\/p>\n \u201cTherefore, the central bank may stick to its current policy stance and we see little chance of further (policy) loosening towards the year end.\u201d<\/p>\n China\u2019s economy has slowed for seven consecutive quarters, hurt by wilting export growth and lackluster domestic demand. Growth hit a low of 7.4 per cent between July and September and is poised this year for its weakest annual showing since 1999.<\/p>\n But things are looking up, due in part to policy easing by the central bank.<\/p>\n The People\u2019s Bank of China cut interest rates twice in June and July and lowered banks\u2019 reserve requirement ratio three times since late 2011, freeing an estimated 1.2 trillion yuan ($193bn) for lending.<\/p>\n