China's Inflation Rate Drops to 5.5% in October

China's inflation rate has slowed to 5.5% in October compared with the same month a year earlier, the National Bureau of Statistics said. That is down from 6.1% in September, and a three-year high of 6.5% in July., National Bureau of Statistics China 11/9/2011 11:26:48 AM

October food prices moderated, as widely expected, with the food-price component of the index up 11.9% from a year earlier, compared to a 13.4% increase in September. Nonfood prices also slowed, rising 2.7% from a year earlier compared to 2.9% in September.

In an especially significant development, food prices actually fell by 0.2% from September, and the overall CPI index rose by just 0.1% from the previous month. In September, the CPI was up 0.5% from August.