That is the view of a senior economist to the news that the year-on-year rate of inflation in China eased to 6.2% in August from 6.5% the month earlier, albeit that the figure remains significantly higher than the government's 4% target.

    Alistair Thornton, of HIS Global Insight cautioned that the moderation in inflation was not 'broad based' and that 'China's inflation is down, but not out'.

    The data released from the nation's National Statistics Bureau suggests that the five interest rate increases since October 2010 and the requirement for banks to increase their reserve ratio has reversed the tide of inflation, but food prices + 13.4% and a 29.3% hike in meat and poultry prices are a continued concern for the authorities.
 

source:ci-online