The consumer price index fell 1.4 percent in May from a year earlier, the 4th straight month that prices have declined, the National Bureau of Statistics reported on its website on Wednesday.

The pace of the price drop, a major gauge of inflation or deflation, slowed from April's 1.5 percent decline, which has led to most Chinese economists to dispense concerns about deflation. Deflation, defined as incessant drop of CPI, is believed to hurt consumers’ confidence of economic recovery from the global economic crisis.

The price of major commodities, such as crude oil and minerals, have been rising in past few weeks, which is likely to also help ease deflation, analysts said.

Food prices, a key component of the CPI, fell 0.6 percent in May from a year earlier, and non-food prices fell 1.7 percent, the Bureau showed.

The statistics bureau also issued data showing that China's producer price index fell 7.2% in May from a year earlier, the sixth consecutive monthly decline.

By People's Daily Online