1、Chinas inflation is sitting at a 29-month low.The CPI increase for June has come in at 2.2 percent, which is well below the governments full-year tarket of trying to keep inflation under 4-percent.CRIs He Fei has the details.Food prices, which account for one-third of the calculation of the CPI, inc
2、reased 3.8 percent last month.That is down from the 6.4 percent increase in May.Meanwhile, the Producer Price Index, the main gauge of inflation at the wholesale level, dropped 2.1 percent in June from a year earlier.This is the lowest PPI reading since December 2009.Zhou Wangjun is a senior officia
3、l with the National Development and Reform Commission.In the domestic market, the prices of pork, vegetables and other agricultural and sideline products have reduced, meanwhile prices for many industrial products have gradually fallen back, leading the price into a downward trend.News of the signif
4、icant downturn in inflation is being greeted with a sense of relief among many living in Beijing, given the cost-of-living challenges in the Chinese capital.I can accept the price if it does not increase. If the price goes up again, there will be trouble. Now the oil price has fallen down as well, a
5、nd residents are quite satisfied.While a slowing CPI bodes well for consumers, it is igniting some concerns about deflation, given a slowdown in demand from Europe and the US.Wang Yuanhong, an economic researcher with the State Information Center, says he expects the central authorities to fine tune
6、 their macro economic policies in the coming months.The macro economic policies are intended to maintain a stable and growing economy, preventing rapid economic slowdown. So I think policymakers will have to pre-adjust and fine tune the monetary and fiscal policies. To boost the economy, the central
7、 bank will need to further adjust bank reserve ratio and allow more flexible lending rates.Over the weekend, Premier Wen Jiabao warned that the economy is facing huge downward pressure.Hes calling for more aggressive action to try to preset and fine-tune the countrys economic policies.Chinas economy slowed to a near-three-year low of 8.1 percent in the first quarter.The central bank cut benchmark interest rates last week for the second time in a month to try to bolster growth.The government has also lowered banks reserve requirements three times since last November.For CRI, Im He Fei.
