A PBOC adviser believes China can cope with imported inflation, but must balance economic growth risks. China's consumer price index has remained below 2% despite rising pressures.

China has sufficient leeway to cope with imported inflationary shocks from Middle East instability, a monetary-policy adviser to the People’s Bank of China said, but the country must balance those pressures with economic-growth risks. Huang Yiping, a member of the PBOC’s Monetary Policy Committee, said that China was already experiencing upwards pressure on prices. But China’s consumer price index (CPI), a key gauge of inflation, has remained below its official target of 2 per cent in recent...