Chinese growth to stabilise

China says its economy will stabilise in the next quarter after its rapid growth slowed in the first half of this year. The global financial crisis has caused China's economy to grow at a slower rate - 10.1 per cent annually in the past three months as opposed to 11.9 per cent for the same period last year. Rising food prices caused higher inflation which also hit the economy, and government measures to curb excessive credit had a further impact.

China's State Information Centre says inflation is now slowing. It expects consumer price inflation of 6.6 per cent in the third quarter, down from an average of more than 7 per cent so far this year.