REUTERS/Kim Kyung-HoonA woman chooses vegetables at a supermarket in Beijing, China, July 9, 2015.BEIJING (Reuters) – Producer prices in China fell to a six-year low in July, while consumer inflation remained subdued, signaling the economy still faces deflationary pressures and Beijing has room to unveil more economic support measures.

China’s central bank has cut interest rates four times since November last year in an effort to boost economic activity.

According to a report issued by the National Bureau of Statistics (NBS), the reading for the consumer price index (CPI), which is a main gauge of inflation, stood at 1.4 percent in June.

Specifically, prices of production materials fell 6.9 per cent, while those of consumer goods edged down 0.3 per cent.

Slowing economic growth and declines in commodity prices have helped keep mainland China’s consumer inflation in check, with some analysts raising the prospect of looming deflation given weakness in other price yardsticks.

Figures published earlier this month indicate that the Chinese economy grew by 7% in the April-to-June period, the same as in the first three months of the year.

“The government’s focus will be on PPI”, said Zhou Hao, an economist at Commerzbank AG in Singapore. They forecast another interest rate reduction this quarter, as well as a cut of 50 basis points to the portion of deposits that lenders must hold in reserve.

Peking University economist Su Jian believes weak commodity prices drive down the prices of finished products, which delays investment and postpone consumption.

Yet, even the central bank has warned that looser policy may not be effective in lessening the pain felt by companies.

“Monetary policy will need to become more supportive”.

Factory-gate prices of excavated oil and natural gas dropped 34.6 per cent, while those of ferrous metal fell 20.1 per cent, according to NBS.

The inflation rate rose from the previous month’s 1.4 per cent, driven by a jump in pork prices. The price of the meat – a major staple on Chinese dining tables and an important part of the CPI basket – leaped 16.7 per cent in July from a year earlier, according to the statement.