Prominent mainland economist Liu Guogang says he expects inflation to stay within Beijing's 10 per cent target this year, even if it surges in the second half.
Mr Liu, also a National People's Congress Standing Committee member, said the faster than expected drop in inflation this year meant a late rebound was unlikely to mean missing the 10 per cent target.
The retail price index hit a three-year low of 7.7 per cent in the first quarter, falling further last month to 7.4 per cent.
It is widely expected that China's inflation rate would rebound in the second half of this year but Mr Liu said it would have to exceed 16 per cent to breach the government's target.
He suggested Beijing adopt a 'relatively loose' economic policy as a medium to long-term objective.
He said his suggestion was broadly in line with the central government's 'relatively tight' economic policy, but that Beijing should be more responsive to changes in the market.
