China CPI cools below 5% in November

   Date:2011-12-09wangxin

China’s Consumer Price Index was above 5 percent during the same period of last year. The latest figure marks a milestone for combating inflation. Analysts say it suggests actions taken by the government are continuing to take effect.

In November 2010, China’s CPI rose to a 28-month high of 5.1 percent. A year later, things have turned around.

Last month, the inflation reading fell to 4.2 percent. That’s far beneath October’s 5.5 percent and also below expectations of around 4.5 percent.

Since last year, the government has been strengthening measures to maintain steady prices through ensuring farm products, decreasing flow capital, and building a supervising system.

And they seem to have paid off. Shi Laibin, general manager of Shandong Shouguang Produce Market, said, "Compared with last year, the general price has fallen about 30%. The price of cabbage is down 70 percent. And so are radishes, white turnips and carrots. "

Mr. Xing, a shopper, said, "Pork is cheaper now. It was 14 yuan, and now is 12 yuan."

In addition to lower food prices, analysts say declines in global commodity prices, and weakening tail-raising factors, also contributed to lower price pressures. But factors that include the global financial crisis, rising Commodity Prices and labor costs, mean the downward trend may not last.

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