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The rate of inflation is now at a five-month high, the figures showed.
However, inflation is lower than the Communist Party's target of 3.5% for 2014.
Analysts believe China’s ruling party will introduce interest rate cuts or other measures to stimulate the economy.
Inflation for the month of May rose 0.7% on the previous month, assisted by a 4.1% increase in food prices.
Julian Evans-Pritchard of Capital Economics said, "We don't expect inflation to get out of hand this year.”
Economic growth decreased by 0.3% to 7.4% for the quarter to March 31 from the previous quarter’s figures of 7.7%.
It is expected that growth will slow further in the current quarter.