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CPI dip 'not a sign' of deflation

By Xin Zhiming and Ding Xuemei (chinadaily.com.cn)
Updated: 2009-03-10 15:26

The negative growth of the consumer price index (CPI) in February is not a sign that the economy has fallen into deflation, Su Ning, vice governor of the central bank, told reporters on Tuesday during the annual sessions of the National People's Congress and the Chinese People's Political Consultative Conference.

Su said the drop in CPI last month was due to falling raw material prices rather than food prices.

China's CPI dropped 1.6 percent in February from a year earlier, the first decline since 2002.
 
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