Zeebiz Bureau
Beijing: China’s consumer inflation came down to a two-year low of 3 percent in May, lesser than what was earlier predicted. The ease in inflation has helped the central bank to cut interest rates for the first time this week since the global economic slowdown.
The National Bureau of Statistics on Saturday stated that price could go further below the current marked level. Producer prices decreased more than forecast by 1.4 percent from previous year, a 1.1 percent decline, marked as the third straight month of producer price deflation.
May's consumer inflation reading is dubbed lowest since June 2010.
Food inflation slowed to 6.4 percent in May from April’s 7 percent as a decrease in fruit and pork prices offset a difference in vegetable price. Non-food price inflation slumped to 1.4 percent in May, down from 1.7 percent in April.
With Agency Inputs
