Prices continue drop, market pressure easing

China's consumer prices continued to fall year-on-year last month, easing pressure for an early "policy exit" to prevent bubbles in the property and stock markets.

The consumer price index (CPI), the main gauge of inflation, fell 1.8 percent in July while the producer price index was down 8.2 percent from a year earlier, Li Xiaochao, spokesman for the National Bureau of Statistics (NBS) said yesterday at a press conference.

The July figures were anticipated by the market, where investors are waiting to see more signs of a solid recovery.