Beijing, Aug. 10: China’s inflation rate dipped to a 30-month low in July, giving the government more scope to stimulate growth to keep the economy on track.
The consumer price index rose by 1.8 percent in July, down from the previous month’s 2.2 percent growth rate.
According to the BBC, China has been looking to stimulate domestic consumption amid a slowing global demand for its exports.
The drop in prices of pork, meat and poultry products, which fell by 18.7 percent and 6.1 percent from a year earlier respectively, were the key reasons of the slowdown in the rate of inflation.
There are fears that growth in the world’s second-largest economy may further slow down in the coming months.
According to the report, analysts said the slowdown in the growth of consumer prices may see policymakers introduce further measures to boost growth.
“This number gives more room for policy easing,” Zhang Zhiwei, chief China economist at Nomura in Hong Kong, said.
He added that the rate of inflation was “likely be below the official 4 percent target for the year, so the policy focus for the government can stay clearly on growth”. (ANI)