Many analysts expect a higher CPI in March. China Merchants Securities analyst Xie Yaxuan expects the CPI for March to rise 2.5 percent year on year with the PPI dipping 4.8 percent for the month. Xie says an increase in vegetable and live hog prices in March has raised worries of higher inflation. But he expects inflation growth to slow in April as vegetable and hog prices may fall. He also expects the PPI deflation to narrow in April on the back of increasing industrial product and commodity prices.

Hua Chuang Securities analyst Qu Qing expects the March CPI to increase 2.5 percent year on year and warns of a risk for a higher than expected inflation reading. Hua also says that due to a rise in key production material prices, especially ferrous metal and chemical products, March's PPI may dip by 4.4 percent year on year.

And, the chief economist at the Bank of Communications -- Lian Ping -- says that many coal companies have raised prices and a slowdown in industrial output will support product prices. Lian also says that the Belt and Road initiative, new urbanization construction, and transportation and water conservation projects will boost demand and stabilize industrial product prices. Lian says he expects PPI deflation to decline in the coming months.