Falling inflation

China's consumer inflation fell more steeply than expected in August, signaling that the worst of the food-driven price pressures of the past year may be over now.

Yet, with producer price index (PPI) remaining high, policymakers should not hurry to pump up the economy even if growth has slowed somewhat.

Latest statistics showed that the country's consumer price index (CPI), to the surprise of all, dropped from 6.3 percent in July to a 14-month low of 4.9 per cent last month.