Inflation is controllable, People's Bank of China deputy Yi Gang says

The mainland's inflation rate will rise "slightly" this year, partly due to lagging effects, but Beijing is confident that it can keep price pressures under control, a senior central banker says, suggesting any dramatic tightening of monetary policy is unlikely.

A benign inflation outlook may provide room for Beijing to maintain its policies to bolster growth after the economy expanded by 7.8 per cent, the slowest rate since 1999.

The forecast may also ease concerns about price rises as policy makers consider reforms including further interest rate liberalisation and an overhaul of the income distribution system that may see a rise in wages for low-income earners.

Speaking on the sidelines of the opening session of the Chinese People's Political Consultative Conference, deputy central bank governor Yi Gang said the consumer price index might rise to about 3 per cent, compared with 2.6 per cent last year.

"We will face some inflationary pressures this year," Yi said. "But generally speaking, we are fully confident of keeping the prices under control."

He declined to comment on whether monetary policy should be used to curb a rise in housing prices. The State Council rolled out new directives on Friday, urging authorities to curb speculative activities through steps including strict implementation of a 20 per cent tax on earnings from property reselling.