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China said on Monday it would take legal, economic and the necessary administrative measures to stabilize prices, a move that underscores its growing inflation concern.

The upward pressure on prices was increasing and the rapid rises in food prices have had a big impact on people's lives, said a televised conference held by the State Council and attended by Vice Premier Zeng Peiyan.

The fast increases in tax revenues and foreign exchange reserves have greatly enhanced the nation's ability to guarantee supply and contain inflation, the meeting said.

China's consumer price index, the main gauge of inflation, rose to an 11-year high of 6.9 percent in November, driven primarily by food and fuel price increases.