Slowing food prices may lower China's Consumer Price Index (CPI) in August and decrease the possibility of a benchmark interest rate hike in September, Economic Information Daily reported citing analysts on Sept 1.

China's CPI may rise by around 6 percent year-on-year in August, which is a significant fallback compared to July's 6.5 percent, according to analysts.

China's central bank, the People's Bank of China, has issued a notice announcing plans to include margin deposit in the reserve requirement. Experts have predicted that the possibility of a benchmark interest rate hike in September will be lowered notably as a result of this new regulation, the paper said.

According to a report issued by the Institute of Finance and Banking of Chinese Academy of Social Sciences, China's 2011 inflation remains controllable, said the paper.