Chinese consumer inflation slides

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China's consumer price index, the main gauge of inflation, has fallen to 1% - continuing a nine-month downward trend.

There were also declines year on year in prices for goods other than foods. The prices for services were also cheaper than they were a year earlier.

There are fears that a severe drought in north China could raise the cost of certain foods in the months to come.

A close look at the figures reveals the difficulties the government here faces as it tries to boost economic growth.

The fall in the headline rate of inflation from 1.2% year on year in December to 1% in January will help.

It means there is less risk that the multi-billion dollar stimulus plan to rebuild infrastructure and create jobs will cause runaway price rises.

But the fact that the prices of goods other than food and of services are now cheaper than they were a year ago will worry economists who fear China might soon have to deal with deflation.

Food matters

Food prices are also a concern.

Chinese Premier Wen Jiabao described how his country was tackling the financial crisis

There is good news - the price of pork, China's most important meat, has fallen by more than 13%.

Vegetable prices rose by more than 19% though.

And the drought in the winter wheat-growing areas in northern China could lead to a rise in grain prices in the months to come.

That could reignite inflationary pressures here.

For many Chinese, the change in food prices is what they really care about, as it is what they spend most of their income on.