The Chinese Academy of Social Sciences also cautioned that the world's second-largest economy was at risk of overheating next year "if the growth speed is not controlled properly", Xinhua news agency said Wednesday.

The report came as Beijing brought forward the release of key economic data for November to Saturday from Monday, fuelling speculation that policymakers were planning to raise interest rates in the coming days.

"The inflationary pressure is building up and excess liquidity would be the major factor driving the CPI (consumer price index) up in the next several years," CASS said in its 2011 Economic Blue Paper.

The think tank forecast consumer prices to rise 3.2 percent over the entire year of 2010 -- above the government's full-year target for three percent -- and 3.3 percent next year.

"Surging grain prices in the international market and the rising cost of growing grains in China would keep the prices of consumer goods at a relatively high level," the report said.

Prices for manufactured goods were also expected to rise next year.

China on Friday pledged to shift its monetary policy stance to "prudent" from "relatively loose" next year, signalling new interest rate hikes were on the way.

The announcement came amid growing fears among officials and consumers over rising prices and soaring food costs.

China's consumer price index rose 4.4 percent year-on-year in October -- the fastest pace in more than two years -- with the prices of 18 types of vegetable increasing more than 60 percent.

Ever fearful of inflation's historical potential to spark unrest in China, Beijing has ordered a range of steps to ensure adequate supplies of key goods and offer financial help to the most needy.

The central bank last month ordered banks to raise the amount of money they must keep in reserve for the fifth time this year, after it announced in October the first interest rates hike in nearly three years.

CASS also forecast the economy to grow 9.9 percent this year before accelerating to around 10 percent in 2011 "with effective macroeconomic controls".

"If the growth speed is not controlled properly, the economy might grow at a rate of more than 10 percent, which would result in overheating and add pressure to economic growth in 2011," the report said.

The think tank's economic growth forecast for 2011 is higher than that of the World Bank, which expects growth to slow to 8.7 percent next year from an expected 10 percent this year.

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