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China's interim price intervention announced in mid-January is necessary and in accord with the law, said Ma Kai, the top macro-economic planner on Thursday.

"As a responsible government, we will not turn a blind eye to the situation," said the minister in charge of the National Development and Reform Commission, referring to the price hikes since mid 2007 which was worsened by the snow havoc before the Spring Festival.

Last year, China's consumer price index (CPI) rose 4.8 percent year-on-year, the highest since 1997 and well above the 3 percent target, mainly due to rises in the cost of food and housing.