Dongguan's consumer price index (CPI) fell 1.4 percent year on year in the first half of this year, the Dongguan Administration of Commodity Prices announced Monday.
Food prices, which comprise a third of the CPI, dropped 1.5%, as pork prices continued to fall with concerns that the A/H1N1 influenza virus was connected with pigs.
Rice and related products prices, however, mark an increase of 5.6%. Prices for cigarettes, alcohol and related products climbed 2.4% year on year due to rise of taxation.
Housing prices plummeted by 20%, representing the biggest drop among all the commodities' prices, according to the Administration.
In despite of the drop, the Administration said the CPI would return to positive as Dongguan's economy is showing more stable and solid signs of recovery as a result of the government's continuing investment in the city's infrastructure.