China wants to slow investment in industries such as construction

Last month's consumer prices were 4.4% higher than the same month the previous year, statistics revealed.

Officials have hinted that interest rates will rise if inflation hits 5%.

However, there are some signs that the state is managing to rein in the economy, with separate reports showing a drop in factory output.

Boom time

China's growth has taken many observers by surprise and has been blamed in part for the recent surge in commodity prices.

The country's economy expanded by 9.7% in the first three months of this year, after expanding by 9.1% last year.

Premier Wen Jiabao has warned that the pace is unsustainable and his government has been looking at ways of slowing growth without slamming on the brakes.

Earlier this month, China's banking regulator told lenders to vet borrowers more thoroughly as part of its drive on reckless investment.

Economists said that they expect the rate of inflation to slow in coming months and explained that May's surge probably was down to last year's low base level.

Prices in 2003 were hit by, among other things, the outbreak of the killer SARS virus

According to Chris Leung, an economist at DBS Bank, "government measures are working, especially on money supply and fixed-asset investment".