10 Sep 2011

Inflation slows in China

6:14 am on 10 September 2011

The inflation rate in China has slowed slightly. Consumer prices in the year to August were up by 6.2% - down from a three-year high of 6.5% in the year to July.

Food prices have been the main reason for the rising costs in the country.

Separately, the National Statistics Bureau said industrial output rose 13.5% in August year-on-year, slightly down on growth in July.

The government has made curbing inflation its priority, fearing it could prompt unrest.

The Bank of China has raised interest rates five times since October 2010 and increased the reserve ratio requirements for banks in the country nine times during the period.

Analysts said the inflation data seemed to indicate that these steps were starting to take hold.

Other data issued on Friday showed that retail sales jumped 17% in August. Fixed asset investment, a measure of government spending on infrastructure, rose 25% in the first eight months of 2011.