English Story

中国六月通货膨胀率降至2.2%

Inflation has eased sharply in China, giving policymakers more room to spur economic growth amidst a global slowdown.

中国通货膨胀率急剧下降,这使决策者有更多刺激经济增长的空间。

Consumer price rises cooled in June to 2.2% compared to the previous year, China's statistics bureau said.

That is down from 3% in May and is well below the government target of 4%.

China has taken steps to bolster(支持) growth as the global economic crisis weighs on demand for its goods.

Analysts said lower food prices was the main driver of the slowing inflation.

Pork prices, one of the biggest contributors to skyrocketing inflation last year, fell 12.2% from 2011.

Growth steps

China's central bank has cut key interest rates twice since the start of June, with benchmark lending rates down to 6%.

It has also cut the amount of money banks must keep in reserve in an effort to boost lending.

Analysts said they expected more such moves to boost growth from the government going forward.

"A lower consumer price index opens room for further policy easing, which we expect will pick up," said Zhang Zhiwei, chief China economist at Nomura in Hong Kong.