China has seen no signs of deflation so far and the falls in prices for products are results of lowered production costs, improved productivity and increased supplies, a spokesperson for the National Bureau of Statistics (NBS) said Thursday.

According to Zhen Jingping, the spokesperson, the country's consumer price index rose 2 percent year on year during the past three quarters; the producer prices, up 5.4 percent; the purchasing prices of raw materials, fuels and electricity, up 9.2 percent; and bank loans, up 13.8 percent.

"I'm optimistic about the country's economy in general. The economy will grow by 9 percent or a little bit higher this year, and we expect a good beginning next year."

China's capability of supplies has been increasing in recent two years due to massive investment in fixed assets during the past few years, therefore there will not be any major problems on the supply side, he said.

The growth rate of investment demand will fall only slightly, he said.

Investment in new projects launched during the first three quarters of this year and in projects under way grew by 28 percent, which indicates industrial investment will not fall by big margins, he said.

Consumption growth in the coming year will maintain the current rate, he added.

China's retail sales of consumer goods in the first nine months this year hit 4,508.1 billion yuan, up 13.0 percent year-on-year, the bureau said in its quarterly report.

He said during the first three quarters the growth of income for urban residents stood at 9.8 percent, the growth of cash income for rural residents was 11.5 percent, and corporate profits grew by 20.7 percent.

China's economy still face some problems or challenges, such as high oil prices and growing trade protectionism, said the spokesperson.

Source: Xinhua