The government will try to boost grain production by giving farmers more subsidies and raising the price it pays for wheat and rice, the country's planning agency, the National Development and Reform Commission, announced.

It also promised to take steps to increase supplies of grain, meat and cooking oil.

December's inflation rate was 6.5 per cent compared with the year-earlier period, down only slightly from November's 6.9 per cent, the highest rate in 11 years, the government said on Thursday.

December's food price rise was not announced, but November's food inflation rate was 18.2 per cent.

Food prices have been climbing at double-digit annual rates since mid-2007, due mostly to shortages of pork and grain.

Communist leaders are worried about possible political tensions because the rises hit China's poor majority hard.

The surge is especially sensitive ahead of the Lunar New Year in February, when households stock up for banquets and to feed visitors during the most important family holiday of the year.

Beijing has taken a series of steps in recent months, raising aid to pig farmers, curbing grain exports and barring price increases by producers without official permission.

This week, the price freeze was extended to fertilizer to cushion the blow on farmers.

For the full year, food prices rose by 12.3 per cent in 2007, while prices for pork, China's staple meat, were up 48.3 per cent, according to the government. -- AP