China’s inflation falls further as government cuts rates

BEIJING, China – China’s inflation fell further in June as the government cut interest rates to stimulate its slowing economy.

The government said today that consumer prices rose 2.2 per cent over a year ago, down from May’s three per cent rise.

Beijing tightened controls last year to cool an overheated economy and inflation but reversed course after global demand plunged and growth abruptly slowed.

It has cut interest rates twice since the start of June as it tries to pull the economy out of its deepest slump since the 2008 global crisis.