China's consumer prices fell in July for a sixth month, declining 1.8 percent from a year earlier, the government reported Tuesday, possibly easing fears Beijing's stimulus spending might push up inflation.
Wholesale prices fell even more sharply in July, declining 8.2 percent from a year earlier, the National Bureau of Statistics reported. That reduced pressure on producers to pass on costs to consumers.
China's consumer prices have declined steadily this year, partly because they are being compared with a period of high inflation in 2008. A prolonged price decline can cause economic problems, but the recent decreases were expected and give Beijing a free hand to spend heavily on its stimulus.