Even as the inflation worries got hightened in China, some sign of relief has emerged.  According to a release by China's Ministry of Commerce on Thursday, prices of farm produce and producer goods in China's 36 large and medium-sized cities have dropped six weeks in a row.

In the week ended June 13, farm produce prices dropped 0.4 percent in those cities from a week earlier while producer goods prices slide 0.9 percent, said a statement posted on the ministry's website.

Food prices account for about one third of the weighting in China's consumer price index (CPI), and the falling farm produce prices will eases some inflationary pressure for the government.

China's CPI accelerated to a 19-month high at 3.1 percent year on year in May, exceeding the 3-percent government target for the year. But the National Development and Reform Commission (NDRC), China's central economic planner, projected last week the CPI will only grow 2.6 percent in the first half of 2010 over one year ago.