China's average consumer price index (CPI) growth for the year 2021 is expected to stay below 2 percent, Yi Gang, governor of the country's central bank, said Thursday.
Judging from various factors, the country's CPI remained low in the first couple of months but will likely trend higher, Yi said at the 13th Lujiazui Forum in Shanghai.
Noting the country's producer price index (PPI), which measures costs for goods at the factory gate, saw a rapid rise this year, Yi said that the hike is partly due to a low comparison base last year, and a longer-term holistic approach should be taken to observe the changes in PPI.
Considering that China's economy is operating within a reasonable range and nears the potential output level, the price trend is under control, Yi said, adding that the central bank will continue to implement a normal monetary policy to ensure stability.
The country's monetary policy will focus on structural support for specific sectors including the green industries as well as micro, small and medium-sized enterprises, Yi said.
China's CPI rose 1.3 percent year on year in May, while average CPI in the first five months of the year went up 0.4 percent from the same period last year, data from the National Bureau of Statistics showed Wednesday.
The country has set its consumer inflation target at around 3 percent for the year 2021, according to this year's government work report.