China's central bank raised the interest rate six times last year while the reserve requirement ratio was increased 10 times to cool the economy. It will also quicken the pace of the yuan's appreciation this year but leave the interest rate untouched, observers said.

　　SYWG cut its outlook of interest rate rises from three times to one to two times this year.

　　"The April inflation is a short term rebound and the rise in prices is likely to be less than 7 percent in the second half of this year," said Guosen Securities.