China's consumer price index fell to a 10 month low in July. The National Bureau of Statistics says the July rate was 6.3 percent. It's the third straight month the CPI has fallen in China. Experts say government macro-economic controls have achieved their goal.

China's consumer price index fell to a 10  month low in July.

During the first half of last year, the Chinese government adopted a series of measures, including subsidies for livestock and grain producers to encourage higher production. Experts say they expect the CPI to continue its slow slide over the months ahead.

Lu zhongyuan, deputy director of Development Research Center of the State Council,said, "The declining CPI shows that the government's efforts to prevent inflation and economic overheating has taken hold."

On domestic markets, pork prices have been stable with increased supply. Prices of vegetables are going down. At the same time, world oil prices have begun falling recently.

Li yang said,"I suppose the downward trend of the price index will dominate in the second half of the year. China enjoys a long-term high savings rate and the central government' fiscal revenue income has been greater than expenditures since 2003."

With all these positive factors, experts predict that the price index in China will continue to fall in the second half of the year. So far this year, the growth in GDP remains higher than growth of the CPI.