China's consumer inflation posted a year-on-year increase of 1.3% in May, according to data from the National Bureau of Statistics. The May CPI came in under the market estimation of 1.6% year on year, increasing by 0.4% from April.
China's consumer inflation is expected to stay under 2% in 2021, below its official target of about 3%, Yi Gang, governor of the People's Bank of China (PBOC), said on Thursday at the opening ceremony of the Lujiazui Forum 2021.
Yi said Chinese economy is operating in a reasonable range, near the potential output level, prices are overall controllable, and the country should adhere to normal monetary policy.
Yi added that the interest rate is kept at an appropriate level, which is relatively low compared to rates in other developing markets.
"There are still uncertainties with the overseas pandemic situation, economic recovery and macro policies, and we must not lower our guard regarding inflation and deflation pressures from all sides," Yi said.
出品：南方财经全媒体集团 · 音视频部