Prices in China continue to fall

China’s consumer prices fell by 1.5% in the year to April, figures show, the third consecutive month of declines.
The drop came after food and energy prices eased from last year’s high levels, and followed annual falls of 1.2% in March and 1.6% in February.
Food prices were down 1.3% in April from a year ago.
A key factor was the drop in the price of pork, which was down 28.6% from a year earlier. In 2008, shortages had sent pork prices sharply higher.

Costs for fuel and raw materials were 9.6% lower than the same period a year ago.
The fall in prices had been expected.
„The sharp rise in food prices in early 2008 and subsequent declines explain much of the year-on-year fall in CPI inflation,“ said Jing Ulrich, chairman of China equities at JP Morgan.
„Deflationary concerns appear to be subsiding as the economy shows signs of recovery.“