BEIJING, July 14 (Reuters) - China has not seen deflation and there's no deflationary risks in the second half of the year, Liu Guoqiang, deputy governor of China's central bank, said on Friday.
The consumer price index (CPI) could trend lower in July before rebounding in August, Liu told a press conference in Beijing.
The CPI was unchanged year-on-year in June, compared with a 0.2% gain seen in May, official data showed.
China's economy needs time to return to normal after the pandemic, Liu said.
The central bank has ample policy tools and will step up "counter cyclical" adjustments, he added. (Reporting by Kevin Yao and Qiaoyi Li Editing by Shri Navaratnam)
