Chinese Inflation Slows

Posted August 9th, 2012 at 12:30 am (UTC-5)
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China's inflation rate has slowed for the fourth consecutive month, giving the government more room to loosen its fiscal policies in order to spur growth in its slowing economy.

The National Bureau of Statistics says consumer prices rose by 1.8 percent in July compared to the same period a year before. The inflation rate is down from 2.2 percent in June, and at its lowest level since the beginning of 2010.

China has been trying to stimulate economic growth, which slumped this year amid weaker demand for the country's exports.

The government has cut interest rates twice since June and eased rules on the amount of money banks must have on hand in order to encourage more lending.

The International Monetary Fund issued a report last month encouraging China to focus on boosting domestic consumption and become less dependent on exports to drive its growth.