China"s Inflation Down To 6.3% in July 2008

After hitting a high of 8.7% in February 2008, the inflation rate trended downwards and was 6.3% in July 2008 (5.6% same period last year).

With inflation slowing, this gives the Beijing room to start reducing interest rates and increasing the amount that banks can lend in order to boost economic growth. This shows that Beijing's efforts at reigning in growth is working and inflation for the year should come in around 7% which will still be below GDP growth expected at 10%.