China's consumer price increases will continue to be within a reasonable range and the country is capable of meeting an annual consumer price index (CPI) target of "around 3 percent", said China's central bank on Wednesday.

"From January to June, the CPI increased by 1.7 percent year on year, and the month-on-month increase of the producer price index (PPI) gradually declined," said People's Bank of China (PBOC) in its latest quarterly monetary policy report.

"Against the backdrop of rare high inflation rates in the world, China has maintained the stability of domestic prices."

The PBOC said it will provide support to the economy while balancing economic growth with price stability.

The central bank also said it would maintain prudent monetary policy and ensure no excessive issuance of currency.

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