BAIDU Inc, which operates China's most popular search engine, reported slower profit growth in its latest quarter yesterday as costs rose sharply. Earnings were up 8.5 percent from a year earlier to 2 billion yuan (US$328.9 million) for the quarter ending on March 31, the Beijing-based company said yesterday. That was down from the previous quarter's 36 percent increase. Revenue was up 40 percent from a year earlier to 6 billion yuan but expenses rose at faster rates. Research and development costs increased 82.9 percent.