China's inflation rate eases to 6.2 pct in August

By the Associated Press | September 8, 2011 | 9:55 PM EDT

SHANGHAI (AP) — China's inflation is moderating, opening the way for a possible easing of tight monetary policies to help ward off the impact of a global slowdown.

The National Statistics Bureau said Friday that consumer prices in the world's second-largest economy rose 6.2 percent over a year earlier, moderating from a 37-month high of 6.5 percent in July.

The data appear to indicate that repeated interest rate hikes and other curbs meant to cool the overheated economy are taking hold. That could ease the dilemma Chinese leaders face in seeking to dampen politically sensitive living costs, while keeping economic growth on track as the U.S. and European outlook worsens.