BEIJING: China's inflation is moderate overall, said Yi Gang, governor of the People's Bank of China, according to a readout of a Wednesday meeting posted on the central bank's website.

China's prudent monetary policy will be flexible, targeted, reasonable and appropriate, he said.

China's factory gate inflation rose 10.7% from a year earlier in September, its fastest pace since the data began to be compiled in 1996, but consumer price inflation rose just 0.7% year-on-year, missing expectations.