A top economist has said that careful management should keep the increase in the Chinese consumer price index at no more than 3 percent this year.

Xinhua, the official government news agency has reported that Yao Jingyuan, chief economist at the National Bureau of Statistics, said during the past 30 years China has experienced inflation when three factors converged: economic overheating, heavy borrowing and a crop failure. He said harvests have been good for the past six years, providing an "important stabilizer" for the economy.

It was also warned by him that China now depends on the international market for many important commodities, including oil and iron. Price increases there would ripple through the economy.

It was also reported by the government in February that a 2.6 percent in 12-month increase in the CPI. Last year, the country had negative inflation for nine months ending in November, when prices rose .6 percent. (With Inputs from Agencies)