The rate of growth of China's consumer price index (CPI) slowed in April, rising three percent, the National Bureau of Statistics (NBS) announced on Monday.
   
The drop in growth of the index, a main gauge of inflation, is the first time the index has slowed this year. In March, the index rose 3.3 percent year-on-year, the largest growth of the index for 25 months after hitting 2.2 percent and 2.7 percent in January and February.
   
The NBS said consumer price inflation jumped by 2.8 percent in the first four months of this year, compared to the same period last year.
   
Food price hikes are still regarded as the leading factor behind the inflation.
   
In April, food prices rose 7.1 percent on last year's figure, signaling a 0.6 percent slowdown from March. At the same time, grain prices rose 6.1 percent, 0.3 percentage points down from March.
   
Construction material prices climbed 5.1 percent, with the cost of renting jumping by 3.9 percent. Prices of water, electricity, and fuel also rose, by 2.5 percent.
   
The NBS revealed that the rise in consumer prices was 0.5 percent higher in the country's rural regions (3.4 percent) than in the cities (2.9 percent).
   
The higher rate of inflation in the rural areas came after the average income of Chinese farmers rose by 12.1 percent in the first quarter of 2007 to 1,260 yuan (US$164), the highest increase in a decade.
   
Despite the drop in growth rate, April's CPI still attained this year's government target of three percent.
   
The People's Bank of China -- the central bank -- warned of the risk of further rises in inflation in its first-quarter monetary policy report on Thursday.
   
The report also forewarned of rises in grain prices due to the tightening of supply, while also expressing concern over energy prices.

(Xinhua News Agency May 15, 2007)