The specter of deflation is fading even though consumer and producer prices have continued to fall, economists said yesterday.

It is not just financial difficulties that have led to a fall in the number of people attending Canton Fair and placing orders, but also the growing maturity of online market places.

The central bank will continue following a moderately loose monetary policy, its quarterly report said Wednesday, dispelling speculation that the stabilizing economy could prompt it to raise interest rates.

International crude prices soared to over $54 per barrel on Monday and Wednesday after positive indicators showed the beginning of an economic recovery in the US and China.

Chinese carmakers are gearing up to enter the European market after testing the US waters some time back.