Dropping food prices helps ease inflation

September's moderation was mainly driven by the deceleration of food prices. And within the food basket, fresh vegetable prices decelerated sharply thanks to ample supply, while the prices of pork continued to fall on an annual basis. Analysts say that mainly contributed to last month's easing inflationary pressure.

Guo Mingqian works in China's largest vegetable wholesale market, which is located in eastern Shandong Province. Each and every day, her main task is to register the vegetable prices. She says the recent drop in prices was thanks to favourable climate.

Guo said, "As the weather cooled down and less rain fell, the rising vegetable supply dragged down prices."

Vegetable vendors share this opinion. They say expanding vegetable plantations would help combat climbing prices.

Jiang Xiangyang, "There're more people and more regions growing vegetables. That increases the supply, as well."

Besides vegetables, the price of meat and eggs has also declined. Analysts attribute this to falling production costs.

Pan Jiancheng, Deputy Director of China Economic Monitoring & Analysis Center, said, "The slowing growth put pressure on companies to de-stock through cutting prices. That's to say the cost of industrial products are falling, which reduces the driving force of consumer prices."

While some are worried that China's CPI may jump in the future, analysts are appeasing and say that food supply will be plenty enough to avoid a rise in prices.

Pan said, "Judging from the current situation, the economy is unlikely to rebound in the short run. So there's not enough demand to drive up product prices. So I think the steady trend will continue in the fourth quarter."

Economists predict CPI will remain at a relatively low level in the remainder of the year, and it's highly likely the government can curb the inflationary rate within the 4 percent target this year.