China's inflation moderates

China's consumer price index, a main gauge of inflation, grew 2.3 percent year on year in June, down from 2.5 percent in May, according to the National Bureau of Statistics (NBS).

As can be seen, the growth was in line with previous market forecasts that the CPI would further moderate in the month from the previous months.

The main reason for moderate price gains was unpredictable weather conditions in parts of the country, according to Yu Qiumei, a senior NBS statistician.

It is quite clear that the food price has been staying on top of the increase in CPI price since January this year.

In the month, it accounted for nearly 33 percent of the weighting in the CPI calculation, grew at a tempered rate of 3.7 percent year on year, down from the 4.1 percent growth in May.

A huge number of people across China have expressed their worry over the fact that food has become an important component of their daily expenses.

In the fruit category, for instance, lichee, a popular fruit in South China, its price rose approximately 20 percent compared to last year.

In terms of leaf vegetables, the prices went down 1.8 percent compared with May.

It is mostly because the high temperature with frequent rain in the region that affected the leaf vegetables' production, distribution and supply.

Even though floods could be a key cause of increasing food prices, considering the overall situation that fruits and vegetables are entering harvest time in summer, the circumstances will get brighter as the supply conditions will be surged up, according to experts.

That is to say, people may have optimistic expectation in terms of fruit and vegetable prices, and the CPI in coming months.