According to the latest data released, the consumer inflation in China slowed significantly to just 2.1 per cent during the month of March.

China's consumer price index, which measures the prices paid by the consumers for goods and services in the country, rose 2.1 per cent in March compared to the same month of the previous year, according to the data released by the National Bureau of Statistics of China on Tuesday.

The consumer price index was recorded at 3.2 per cent during the month of February in the world's second largest economy.

The rise in food prices grew just 2.7 per cent in March compared to March of 2012. The growth in food prices was recorded at 6 per cent in February, 2013. Food items form an important indicator of prices as they account for more than a third of the country's inflation calculation. The Chinese government has maintained that it aims to keep the inflation below 4 per cent.

Experts have pointed out that the fall in inflation may be due to the distortion of Lunar New Year holiday. However, the fall will ease demands for high inflation pressure and monetary tightening in the Chinese economy.