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Growth of China's CPI Slows down in July
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The growth of China's consumer price index (CPI) slowed down to one percent in July, as food prices moved down the inflation rate, the National Bureau of Statistics said Friday.

July's CPI growth is 0.5 percentage points lower than that of June, reversing the widening trend of CPI growth rates since March this year, the NBS said.

China's CPI rose 0.8 percent, 1.2 percent, 1.4 percent and 1.5 percent in March, April, May and June respective, previously statistics showed.

Food prices in July increased 0.6 percent, compared with 1.9 percent in May, while non-food items rose 1.2 percent in July, roughly the same as 1.1 percent in May.

As the fluctuation of food prices contributes to 30 percent of CPI growth, slower food prices growth in July lead to the lower inflation rate, said experts.

In the food category, edible oil prices slipped 3.3 percent, meat prices dropped 7.1 percent, egg prices fell 12.9 percent and vegetable prices went down 3.5 percent in July, but prices for grains rose 2.9 percent and seafood increased 2.5 percent.

Among major non-food items, electricity, water and fuel prices went up 5.3 percent. Prices for construction and furnishing materials rose 4.1 percent and rents up 3.1 percent.

(Xinhua News Agency August 12, 2006)

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