China Sees Continued Falling Prices

BEIJING, August 5 (Xinhua) -- China's retail prices have been declining for 22 months, and more than 80 percent of all major commodities are involved in this downward trend, according to the State Information Center (SIC).

While the decline in retail prices covers a wide range of commodities over a long period of time, some products are simply undergoing normal price adjustment, said SIC.

Declining food prices may account for this round of price decline, and except for some short-term rebound in the prices of grain and eggs, food prices have been locked in this downward trend.

Analysts attribute declining prices to redundant production and the slow increase in market demand, and they expected the decline to continue in the second half of this year.