CHINA'S inflation rate for May could be the same as for April, analysts predicted before the release of the figures this week.

Other economic indicators are also likely to show only small changes, they added.

These will make policy moves difficult as they will not clarify China's economic performance following contradictory information in recent reports.

One survey indicated manufacturing activity in private and export-oriented companies shrank in May, while another reported state-owned companies expanding at a faster pace than before.

If inflation figures can offer no guidance, the most likely scenario that there will be no policy moves this month or the next, said analysts.

The Consumer Price Index, the main gauge of inflation, may expand 2.4 percent from a year earlier for last month, said Industrial Bank's Economist Lu Zhengwei.

The figure for April was also 2.4 percent.

"The outbreak of bird flu disease seems to have been brought under control," Lu said. "Therefore, food prices will stabilize."

China's inflation rose in April from 2.1 percent in March, but analysts said consumer prices remained "tamed," making it feasible for the country to maneuver in policy adjustment.

"China is almost motionless in taking out new macroeconomic policies so far," Lu said.

"It is probably because the authorities would like to have a better understanding of the current economic conditions and be well prepared for the upcoming reforms."

China's new leadership is expected to unveil a new round of reforms later this year.

Policy changes may include a redefinition of tax-sharing with provincial and local governments, clarification of land ownership transfer and decentralization of administrative controls.

Li Maoyu, an analyst at Changjiang Securities Co, said the data in May may provide evidence of a weakening economy but retail sales are likely to recover somewhat after the government's anti-corruption campaign.

"The data, especially figures for trade and industrial output, may point at a softer economy than we have expected," Li said.

On Monday, a survey by HSBC showed that Chinese manufacturing activity in private and export-oriented companies shrank for the first time in seven months in May.

This contrasted with the performance at stated-owned industrial companies which reported businesses expanding at a slightly faster pace last month.

Zhou Hao, an economist at Australia & New Zealand Banking Group Ltd, said the "inconsistent" data will continue to complicate China's economic policy making and potentially impair the judgment of policymakers.