China’s consumer price index fell to 3.0% year-on-year in May from 3.4% the month before as the country’s economy continued to cool, Financial Times reported. The producer price index fell 1.4% from the year before, a steeper drop than the 0.7% decrease in April. As data continue to show across-the-board economic weakness, analysts said the low figures gives Beijing room to ease monetary and pump fiscal policy without triggering runaway inflation. “The good news? Receding consumer price inflation frees up much-needed space for policy makers to loosen credit and roll out investment plans,” said economists at IHS Global Insight in Beijing. “The bad news? China’s producers are seeing sharp deflation, pointing to a worrying lack of final demand.” Beijing cut interest rates last week for the first time since 2008.