China's inflation eased in August, after reaching a maximum of three years in July, the National Bureau of Statistics.
Consumer prices in the second-largest economy grew 6.2% last year, up 6.5% in July.
Food prices are the main cause of rising costs in the country.
In addition, the Office said industrial production in China increased by 13.5% in August year on year, slightly down on growth in July.
Analysts said the inflation data seemed to indicate that government measures to curb overheating of the economy began to take root.
"The decline was the largest drop in inflation this year, and offers some hope that prices rose again, led by soaring food prices peaked," said George Worthington of IFR Markets .
Monetary policy
Beijing has insisted that the price increase includes the government's priority.
China's central bank raised interest rates five times since October 2010 and increased the proportion of reserve requirements for banks in the country nine times during the period.
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The easing of consumer inflation was widely distributed in August. The main contribution is a slowdown of rising prices of pork "
Ren Xianfang
IHS Global Insight
This means that banks have been forced to keep more money in their reserves, reducing the loans given out.
Analysts said the latest figures may give the Bank to change its approach to monetary policy.
"On the political front, the tightening measures, at least on hold now," said Dong Xian'an Beijing First Advisory.
IFR Markets "Mr. Worthington added that Beijing can actually begin to relax its policy early next year, "if inflation fell to around 5% or less."
More general concerns
While consumer prices fell in July, analysts said that the authorities should do more to curb rising prices.
"The reduction in consumer inflation was not out of place in August. The main contribution is to moderate the rise in pork prices," said Ren Xianfang IHS Global Insight.
Data published by the China Federation of Logistics and Purchasing last week showed that manufacturers were affected by rising raw material costs in August.
The input price sub-index, a key indicator of how many factories pay for raw materials, rose to 57.2 in August from 56.3 in July.
Analysts said that until the price growth is contained in the council, inflation remains a threat to China's economy.
"China still faces very strong inflationary pressures," said Ren.
Other data released Friday showed that retail sales rose 17% in August, while investment in fixed assets, a measure of government spending on infrastructure, increased by 25% in the first eight months of 2011.
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