SHANGHAI - Stocks on the Chinese mainland fell on Thursday, dragging the benchmark index to a three-month low. That's after a slump in commodities raised concern producers' earnings will decline.

Jiangxi Copper Co tumbled to the lowest level in more than seven months. PetroChina Co and China Shenhua Energy Co retreated at least 1.3 percent after oil prices fell below $100 a barrel. Sany Heavy Industry Co dropped 2.4 percent after Goldman Sachs Group Inc said growth in the machinery industry will weaken. Liquor maker Kweichow Moutai Co advanced among consumer stocks on speculation that earnings will be able to weather government steps to curb inflation.

The Shanghai Composite Index slid 39.34 points to 2844.08 at the 3 pm close, the lowest level since Feb 11. The index dropped 0.3 percent after official data showed inflation in April exceeded the government's target. The CSI 300 Index declined 1.4 percent to 3101.60.

"The plunge in commodity prices is dragging down markets all around," said Tu Jun, a strategist at Shanghai Securities Co. "boosted investors' concerns over more tightening measures and spurred selling", he said.

Related readings:  Stocks fall as commodities decline on inflation  Hong Kong stocks down 0.83% by midday - May 12  HK stocks edge down as heavyweight falls - May 11  Stocks rise on strong export growth

The Shanghai Composite has retreated 7 percent from a five-month high on April 18 amid concern the government would add to the 10 increases in lenders' reserve requirement ratios and four rises in interest rates since early last year to cool inflation.

Late on Thursday, the People's Bank of China raised reserve requirement ratios to a record 21 percent.

The loss has pared the gauge's advance this year to 1.3 percent. The People's Bank of China may lift borrowing costs in June or July, analysts at Shenyin & Wanguo Securities Co, wrote in a report on Thursday.

Consumer prices increased 5.3 percent in April, the National Bureau of Statistics reported on Wednesday, exceeding the government's full-year target of 4 percent for a fourth straight month. Clothing costs climbed 1.4 percent in April from a year earlier, the biggest gain since 1997, the report showed. Non-food inflation held at 2.7 percent, the fastest pace in at least six years.

"It is not the time yet for policymakers to ease tightening, as inflation is still elevated and underlying pressure remains," said Shen Jianguang, a Hong Kong-based economist at Mizuho Securities Asia Ltd. "They may not have that kind of luxury until the third quarter."

Jiangxi Copper slid 3.5 percent to 32.62 yuan ($5.02), its lowest close since Sept 30. Yunnan Copper Industry Co declined 3.5 percent to 22.12 yuan. Zhongjin Gold Corp retreated 3.8 percent to 33.09 yuan.

PetroChina sank 1.3 percent to 11.03 yuan. Shenhua lost 1.9 percent to 27.47 yuan. China Coal Energy Co slipped 2.1 percent to 10.01 yuan.

Bloomberg News