China inflation eases in November

Chinese consumer inflation hit a 22-month-low in November as food and energy costs eased.

Consumer prices rose 2.4% last month, compared with the same period last year, well down from 4% in October and February's 12-year-peak of 8.7%.

Falling inflation gives the government more scope to stimulate the economy without worrying about rising prices.

It announced a $500bn (£334bn) stimulus package, with tax cuts, construction spending and aid for the poor.

It has also cut interest rates four times since September.

Food prices

The need to stimulate growth was highlighted on Wednesday when China reported its first fall in exports for seven years, which was blamed on the global economic downturn.

Exports dropped by 2.2%, while imports shrank by a massive 17.9% as Chinese consumer spending slumped.

Although politically sensitive food inflation eased in November, it is still high by most standards.

Food costs overall were up by 5.9%, according to the National Bureau of Statistics, which was down from the previous month's figure of 8.5%.

November's figure included 9.3% increase in the price of pork, which is China's staple meat.

Government leaders have been having an anti-inflation campaign since last year, with aid for farmers to boost output and cuts in taxes on food imports.

The government finally removed food price controls on 1 December.