China's consumer price index, a main gauge of inflation, grew by 1.1 percent year-on-year in June, putting CPI expansion at 0.5 percent year-on-year for the first half of this year, the National Bureau of Statistics said on Friday.

Food prices declined by 1.7 percent year-on-year in June while non-food prices climbed up by 1.7 percent on-year.

The country's CPI reading went down by 0.4 percent compared with May.

Dong Lijuan, statistician at NBS, said that supply in the consumption market remained sufficient and the household consumer price remained stable in June.

China's producer price index, which gauges factory-gate prices, rose by 8.8 percent on-year in June, marking the overall PPI growth for the first six months at 5.1 percent year on year. PPI growth in June came in at 0.3 percent compared with May level.

Dong said that overall, policies aiming to ensure commodity supply and stabilize their prices have taken effect. Relations between market supply and demand are improving and the rise in industrial prices has moderated.