China May inflation falls to 7.7%

BEIJING: China’s annual inflation fell in May to 7.7%, bucking a global trend, as a year-long surge in food prices ebbed and producers held back from passing on sharply higher energy and raw material costs.

The drop will provide some relief to policymakers who have declared high inflation their main economic challenge, but economists ruled out a softening of the central bank’s tight policy after it published strong money supply data for May.