China`s key inflation hits 17-month low

China's key inflation rate cooled to a 17-month low, raising the prospects of further government steps, including interest-rate cuts, to bolster growth in the world's fourth-biggest economy amid a worldwide slowdown. Consumer price inflation (CPI) increased at a 4% pace in October from a year ago period, the National Bureau of Statistics said on Nov 11, after gaining 4.6% in September. October's inflation was less than the 4.2% median estimate and has halved from February's 12-year high of 8.7%. It has slowed for six straight months on improved food supplies and falling prices for energy and commodities. Food prices surged 8.5%, the smallest increase since May 2007.