China’s inflation fell further to 3 per cent in May
09 Jun 2012
Inflation in China continued to ease in May after it fell to 3.4 per cent in April, in what is seen as another sign that more stimulus could be on the way.
Consumer prices in China increased at an annual rate of 3 per cent in May, the National Bureau of Statistics reported yesterday.
Only last summer, Chinese consumers were battling a whopping 6.5 per cent inflation rate.
May marks the fourth straight month of inflation below 4 per cent after prices had stayed consistently high for years as the Chinese economy grew at a torrid pace. However, inflation is down significantly in the past year after the government initiated steps to rein in the price increases.
The concern for the Chinese government now is slowing growth.
On Thursday, the People's Bank of China announced a surprise 0.25 percentage point rate cut in various lending and deposit rates for Chinese banks, in a move is designed to spur economic activity.
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