The consumer price index (CPI), and not asset prices, is the major factor in decisions regarding raising interest rates, suggested Zhou Xiaochuan, chief of the People's Bank of China.

China's central bank admitted on Wednesday that the country is coming under increasing pressure from price hikes, and acknowledged inflation risks are "worthy of attention".

The central bank is concerned about inflationary pressure and is ready to make use of a range of monetary policy tools to curb prices rises, a senior official said yesterday.