Mainland inflation is expected to have eased last month amid an economic weakening that prompted the first cut in interest rates since 2008.
Economic data to be released today is expected to reveal easing price increases and weakened growth dynamics - conditions that prompted the surprise rate cut on Thursday.
The Consumer Price Index is likely to drop to below 3.25 per cent, said Shen Jianguang, an economist at Mizuho Securities Asia. The CPI rose 3.4 per cent year on year in April after 3.6 per cent in March. The pace of increase is expected to dip below 3 per cent in coming months as the economy gears down, while monetary easing is expected to be stepped up.
Policymakers were already aware that May data would show that the world's second-largest economy was cooling more than expected, according to economists.
Today's indicators are likely to 'surprise on the downside', said Peng Wensheng, an economist at China International Capital Corp.
'The interest rate cut suggests the central bank is easing monetary policy more aggressively and China is stepping up measures to support growth,' with May industrial production and investment growth likely to remain weak, Peng said.