Q&A: What lies ahead in 2015 for Chinese economy?

A vendor selling vegetables and fruits waits for customers at a roadside stall in Beijing January 8, 2015. [Photo/Agencies]

-- Is China the next country to face the threat of deflation?

Deflation is not an immediate concern for China, although deflation pressure will likely persist in 2015.

Despite the plunge in global oil prices and other commodities, the cost of other consumer goods are on the up, albeit slower than the government initially anticipated at the start of last year.

Moreover, the central bank has powerful tools to counter falling prices, such as reducing interest rates and reserve requirement ratio for banks.

Analysts have advised the government to use both monetary policy tools and structural reform measures to head off the risk of deflation.