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School cafeterias in China must be run and managed by schools and may not be operated by outside contractors, according to the regulations.

Sun Zhigang, vice minister at China's National Development and Reform Commission, said the world's largest developing country will continue to push forward reforms in income distribution in pace with the practical conditions of China, Sun said.

It marks the first time for China to cut the benchmark rates since December 2008, after which it has raised the rates five times to drain liquidity.

Sinopec, with 2.55 trillion yuan (about 402 billion U.S. dollars) revenue in 2011, was followed in second place by another oil company, China National Petroleum Corporation, which also reported a revenue over 2 trillion yuan.

Surging vegetable prices were the driving force for the CPI's growth. Rain and flooding affected vegetable production in many places during the peak supply season, pushing up vegetable prices by eight percent.