Chinese consumer prices may continue to drop in June from May as prices of agricultural products fall on sufficient supply, the Shanghai Securities News reported, citing an unidentified person with ties to the National Development and Reform Commission.

China's June CPI may rise 3.4 percent to 3.5 percent on the same month a year earlier, the Shanghai-based newspaper said. China's consumer prices may rise about 4 percent in July on year and see slower growth in the second half, the newspaper said, citing Zhu Baoliang, a researcher at the State Information Center.