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Increases in food prices saw the rise in price of annual consumption reaches a maximum of 25 months in October to 4 4pc, well above the target of 3pc.?Photo: AFP/Getty Images

Political Bureau of the Communist Party stated that China will change its monetary policy "losing respect" to "cautious", Xinhua News Agency reported.

Recent food price increases has seen the rise in price of annual consumption reaches a maximum of 25 months in October to 4 4pc, although above 3pc target.

China tightens monetary policy after the record expansion of credit to counter the financial crisis has added the inflation and the risk of the asset bubble.

The monetary policy change is also a sign that increases in interest rates may be on the road.

"Rate hikes are imminent - we expect a at the end of the month, with more to come in 2011," Brian Jackson, a Hong Kong Canada, Royal Bank emerging markets strategist told Bloomberg.

Concern monetary tightening dampen profits growth has led to a sell-off to China during the month fell over by 10pc since 8 November reference stock.

Shanghai Composite index closed 0 1pc Friday, 2,842.43.

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