China's consumer prices steadied in September amid a sustained recovery of domestic demand, official data showed Sunday.

The consumer price index (CPI), a main gauge of inflation, was up 0.4 percent year-on-year in September, lower from a 0.6-percent rise in August, the National Bureau of Statistics (NBS) said.

The 0.4 percent growth in September was lower than the previous month mainly because of the higher base logged in the same period last year, said NBS statistician Dong Lijuan.

On a monthly basis, the CPI remained unchanged compared to the previous month.

In breakdown, food prices rose 3.3 percent year-on-year in September, an increase of 0.5 percentage points compared to the previous month. Non-food prices were down 0.2 percent, reversing a 0.2-percent uptick in August.

Among non-food items, the decline in energy prices deepened, and tourism prices shifted to decrease from an increase with widening declines in airfares and hotel accommodation.

NBS data showed the producer price index (PPI), which measures costs for goods at the factory gate, went down 2.8 percent year-on-year in September.

On a monthly basis, the PPI edged down 0.6 percent, narrowing from a 0.7-percent decrease a month earlier, the data showed.

Dong attributed the monthly PPI performances to fluctuations in international commodity prices and insufficient effective demand in the domestic market.

From January to September, the average PPI decreased 2 percent from a year ago.

China unveiled an action plan in March this year to implement a program of large-scale equipment upgrades and trade-ins of consumer goods to expand domestic demand, and stepped up policy support in July with an extra funds injection of 300 billion yuan ($42.4 billion) via ultra-long special treasury bonds.

Under the program, factories are encouraged to replace old machines with advanced new ones, and individual consumers can enjoy subsidies on automobiles and home appliances, among others.

China will apply a set of fiscal policy tools including local government special-purpose bonds, special funds and taxation policies to help stabilize the property market, Minister of Finance Lan Fo'an told a press conference Saturday.