Chinese inflation falls for third-straight month

Chinese consumer price inflation fell to a ten-month low of 6.3% in the year to July.

The fall, from 7.1% for the year to June, comes on the back of a sharp slowdown in agflation.

The result has led some analysts to predict that the People's Bank will loosen its monetary policy stance. It adopted a tight stance late last year and has raised its reserve ratio five times in 2008 to 17.5%.

Food prices are still rising rapidly - by 14.4% year-on-year. But this is way down on the 23.3% figure reco