China's September Inflation Dips Slightly

NTDTelevision 2011-10-14

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Although China's inflation dropped slightly in September, policymakers are faced with rising food prices. And many residents have no choice but to tighten their belts.

China's inflation rate dipped to 6.1 percent in September, China's National Bureau of Statistics reported on Friday. But the fight against inflation is not over, as food prices continue to soar.

One expert explains why the inflation rate dropped.

[Chen Yuyu, Professor of Economics, Beijing University]:
"The CPI -- we call it the consumer price index -- has decreased a bit in the past two months. Prices have dropped mainly because the price of many agricultural products has reduced in the medium-term. Another reason is related to the bigger picture -- since July or August, the US and European countries have had grim economic outlooks, so everybody feels uncertain about the economy's future. Therefore generally, prices fall."

However, Beijing residents are pinching their pennies because of the high cost of food.

[He Xiangchan, Beijing Resident]
"There aren't too many difficulties, but prices are rising. So when I buy food, I have to pick carefully and buy less."

[Li Siuqin, Beijing Resident]:
"I think the price of meat has risen. So I'm eating less meat. The price of vegetables is okay, it hasn't risen much, I think it has even dropped a bit. So now I eat more vegetables and less meat."

The price of food rose 13.4 percent in the year to September, and non-food prices rose 2.9 percent.

Data showed on Thursday that China's import and export growth eased in September, with export growth hitting seven-month lows, as domestic and overseas demand cooled.

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