Chinese inflation falls to 6.1%

China's tightened monetary policy appears to be having the desired effect on inflation as figures for last month showed CPI dipped to 6.1% in September.

The National Bureau of Statistics said inflation was down from August's 6.2% and lower than expectations. China's producer price index was 6.5%, well below 7.3% a month earlier. However, food inflation remained at the higher level of 13.4% indicating the Chinese government is unlikely to ease monetary policy until inflation is firmly under control, the FT reports. Over the past year, the central bank has raised interest rates five times and reserve requirements for its banks nine times in a bid to rein in inflation and cool an overheated economy.