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China's Nov CPI drops to 21-month low

By Wang Xu (chinadaily.com.cn)
Updated: 2008-12-11 10:08

A vendor sells vegetables at a street-side market in Beijing, October 24, 2008. China's consumer price index (CPI), the main gauge of inflation, rose at a slower annual rate of 2.4 percent in November, the National Bureau of Statistics said on Thursday.[CFP]

Special coverage: Trends & Policies  Interest Rate Cut  Related readings:  China's CPI projected to slide further  China CPI eases to 4% in October

China's consumer price inflation eased to a 21-month low in Novermber, giving room for the government to introduce further interest rate cuts to boost the economy.

The consumer price index rose 2.4 percent year-on-year in the past month, declining for the seventh consecutive month, the National Bureau of Statistics said on Thursday.

Falling food prices are the main factor contributing to the moderation of consumer inflation, after it peaked at 8.6 percent in February. Food prices, which account for one-third of the consumer price index basket, fell 1 percent from a month ago.