China's soaring food prices which boosted consumer inflation to a decade high will not increase further in the second half due to moves to boost supply, state television quoted the top economic planner as saying on Wednesday.

"Prices of goods will stabilise in the second half. But grain, edible oil and meat prices will remain at high levels though no drastic rise will be seen," China Central Television cited an official from the National Development and Reform Commission as saying.

China's annual inflation surged to 5.6 percent in July, the highest since February 1997, from 4.4 percent in June.

The jump entirely reflected a spike in food prices caused by a shortage of pork and by flooding across large parts of China.

The price of food, which makes up a third of China's consumer basket, rose 15.4 percent in July from a year earlier, with meat prices up an eye-popping 45.2 percent.

"According to the latest data we've obtained, the tight hog supply will be gradually eased by the end of the year," the official said.

The planner also said that officials from six government agencies were sent to a dozen provinces to conduct investigations and ensure local authorities do not just pay lip service to keeping a lid on rising prices.

It also vowed to punish price manipulators who spread rumours leading to panic purchasing or hoarding of goods.

The State Council, or cabinet, issued an urgent order to local governments to spare no effort to contain soaring food prices, an issue that is not only an economic but also a political concern.

Rising living costs are hurting the less well-off and may fuel social unrest.

Various government agencies have rolled out policies to increase pork supplies, including offering subsidies and bank loans to hog-raising farmers and firms.