Yonhap reported that China's consumer prices are estimated to have grown less than 2% in September 2012, decelerating from the previous month's gains.

The Bank of Communications estimated China's consumer price index, the main gauge of inflation, grew 1.8% YoY in September 2012. It is comparable to the August 2012 CPI, which grew 2% YoY. The July 2012 CPI growth rate was 1.8%.

The bank attributed the slowdown in food price gains in the country to the decelerating inflation. The stability of food prices came despite China's weeklong autumn holiday, which started on September 30th 2012.

Usually in September or in October, China sees consumer prices spike, fueled by a spending spree among consumers ahead of the October 1st 2012 National Day and the lunar Mid Autumn Festival.

Rixin Securities Co held a similar view, saying China's CPI gain had probably decelerated to 1.8% in September 2012. The Chinese government's official release of CPI data for September 2012 is scheduled for October 9th 2012.

Market watchers expect the easing inflation will leave China ample room to ease its monetary policies to boost the country's slowing economy.

China's on year growth rate slowed to 7.6% in the second quarter, marking the first time since the fourth quarter of 2009 the country's economic growth rate has fallen below the 8% mark.

Source - Yonhap News

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