China's inflation weakened to a 14 month low in November, indicating that the nation's macro economic control has taken effect, according to Zhou Wangjun, deputy director of the National Development and Reform Committee.

The Consumer Price Index, the main inflation gauge, expanded 4.2 percent from a year earlier last month. Zhou believes it is mainly due to cheaper food prices.

Zhou Wangjun said: "4.2% means our macro economic control has taken effects. Vegetable, pork and egg prices have all declined significantly. This is great for the basic needs of consumers this summer and ensures food supply. "

He adds the figure is close to market expectations and is still reasonable. He predicts that CPI will stay around the same or a little bit higher this December and next January.

Zhou Wangjun said: "Due to greater demand around the holidays in January, and lesser supply of certain food items in the cold weather, food prices won’t go down too much in January next year. "

Decrease in food prices have eased inflation, but it is putting more pressure on farmers.

Zhou said: "We need to established an insurance system. Certain policies are necessary to ensure the safety of vegetable farmers. If the prices become lower than costs, the government or insurance companies will make up for the rest."

Until November, the nation has given out RMB 6 billion  or close to USD 10 billion subsidies to farmers and low income families in 31 provinces. Zhou says the NDRC will continue to work on these policies to solve the basic problems that inflation has brought to low income families and farmers.

Source:cntv.cn