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On the South China Sea issue, Wang reiterated the stance that islands in the region have historically been China's territory. He added that China is committed to resolving the disputes through peaceful dialogue and negotiation.

"With virtually the entirety of the increase coming from food prices, it's not an increase that's likely to be sustained for long," Orlik said.

Stephen Roger, senior fellow of Yale University's Jackson Institute for Global Affairs, told Xinhua that China has ample fiscal space to increase its budget deficit in order to provide support to economic growth.

M2, a broad measure of money supply that covers cash in circulation and all deposits, rose 13.3 percent year on year to 142.46 trillion yuan at the end of February.

BEIJING, March 5 (Xinhua) -- The heavy smog that has shrouded parts of north China will ease on Saturday thanks to a cold front, China's national observatory said.