BEIJING, Nov. 1 (Xinhuanet) -- An official with the National Bureau of Statistics (NBS) has said falling consumer prices indices in China will not lead to a drastic economic slowdown in the country as demand remains high.

    Zheng Jingping, spokesman for the NBS, said rapid growth of supplies and improved productivity are accountable for falling prices or a slowdown of price hikes in China, which is good for the economy.

    China's consumer price index (CPI) has been going down in the past three quarters this year as it grew by 2.8 percent in the first quarter, 1.7 percent in the second quarter, and 1.3 percent in the third quarter, he wrote in an article published Tuesday by China Securities Journal.

    China's CPI rose by 2.0 percent year-on-year in the first threequarters of this year, a decline of 2.1 percentage points comparedwith a year earlier.

    Economic globalization, an abundant supply of cheap labor, low cost of capital for industrial investment and artificially low commodity prices are also responsible for the country's falling CPI or slowdown of price hikes, he said.

    Fierce competition on the consumer products market due to China's strong supply capability arising from the country's massive investment in manufacturing and processing sectors help consumer product prices and the CPI grow at a moderate pace.

    With a total population of 1.3 billion, the abundant supply of cheap labor in China is also another contributing factor to low consumer product prices.

    China's loose environmental protection mechanism also helps producers cut costs as they do not have to spend much to cut the emission of waste, polluted water and gas.

    The prices of oil, natural gas, electric power are some of the few products whose prices are set by the Chinese Government, and they are much cheaper than the international prices. Enditem