BEIJING China's year-on-year consumer inflation is projected to rise gradually in the second half of the year while, mainly due to base effects, second quarter economic growth is expected to be high, according to the central bank governor.

At present, China's economy is recovering from the impact of COVID-19, and the balance sheets of its market entities are being repaired, the People's Bank of China said in a statement on Friday, citing governor Yi Gang.

(Reporting by Ellen Zhang and Ryan Woo; editing by John Stonestreet)