China's January inflation slows to 2%

Wang ruled out possible tightening of the monetary policy, as the foundation for the current economic rebound is not solid.

China's central bank on Wednesday warned of inflationary risks in its quarterly monetary policy report, saying that the influence of rebounding demand, labor supply changes and global monetary easing on prices must be watched closely.

The central bank has resorted to open market operations, a more cautious monetary tool, to improve the cash flow since August 2012. Interest rates and banks' reserve requirement ratio were both cut twice last year to shore up growth.

Growth in the world's second-largest economy dropped below 8 percent for the first time since 1999 last year amid an external downturn and domestic tightening measures intended to tame inflation.