China reported its slowest rate of inflation in nine months as improved harvests boosted food supply, easing pressure on the central bank to raise interest rates.

The National Bureau of Statistics said consumer prices rose 2.8 percent in November from a year earlier after climbing 4.3 percent in October.

The drop in inflation from 5.3 percent in August allayed concern about a sudden slowdown in an economy that is the world's third-largest importer and its largest consumer of steel, copper and cement.

In addition, analysts say slower growth in producer prices reported by the government makes a rate increase less likely.

Premier Wen Jiabao early this year imposed lending restrictions to ease transport bottlenecks and shortages of electricity and raw materials.

The central bank raised its one- year lending rate by 0.27 percentage-points to 5.58 percent in October, the first increase in nine years. And economists predict a further rate rise after the US increases its demand on China to revalue its currency.

(CRI.com December 10, 2004)