China inflation dips to 4 percent

BEIJING, Nov. 11 (UPI) -- China's inflation rate fell to 4 percent in October, making it less worrisome for the government to implement its economic stimulus package, officials said.

The National Bureau of Statistics announced Tuesday the consumer price index, the main gauge of inflation, rose 4 percent in October from the same month of last year, the state-run Xinhua news agency reported.

The October rate was down from 4.6 percent in September, 4.9 percent in August, 6.3 percent in July, 7.1 percent in June. The rate in February, 8.7 percent, was a 12-year- high.

The report said the latest numbers were broadly in line with most forecasts. The decline in inflationary pressures in China is in keeping with a worldwide slump of commodity prices, the China Daily reported, quoting experts.

The developments will encourage the People's Bank of China, the country's central bank, to cut interest rates further before the end of the year, and calm any concern about new spikes in inflation with the implementation of the $586 billion economic stimulus package announced Sunday, the report said. Interest rates have been cut three times in the past two months.

The economic package is designed to reverse slowing economic growth reflected in third-quarter numbers showing growth eased to 9 percent year-on-year, the lowest in five years, compared to 10.1 percent in the second quarter and 10.6 percent in the first quarter.