The People’s Bank of China (PBOC) stated that it would protect its economy against inflation threats.

PBOC stated that it would protect its economy against inflation threats and announced that it would avoid excessive money printing with massive incentives to support growth.

In its quarterly monetary policy report released Wednesday, the PBOC pledged to support the economy and ensure price stability. The bank also stated that it would provide more substantial and higher quality support to the real economy.

The announcements came after China’s consumer inflation data soared to a 2-year high of 2.7 percent in July, driven mainly by pork prices.

The expectation was for an increase of 2.9 percent. In China, annual producer inflation in July was 4.2 percent, below the expectation of 4.9 percent.

The PBOC predicted that consumer inflation could exceed 3 percent in the year’s second half. However, the bank indicated that its target of keeping inflation close to 3 percent in 2022 would be met thanks to measures to secure grain and energy supplies and prudent monetary policy.

Although economists do not consider the PBOC’s statement as a signal that there will be a monetary policy tightening shortly, they stated that the expectation of an easing step in the coming months has decreased.