BEIJING (AP) -- China's inflation rate this year is likely to exceed the government's 3 percent target, a central bank deputy governor said Wednesday.

"According to our analysis, although more measures have been taken to control the inflation, the (increase in the consumer price index) this year will likely be above 3 percent," Su Ning, a vice governor of the People's Bank of China, said at a news conference in Beijing.

While Su's comments were in line with expectations, they may also indicate the government is no longer aiming for the lower target and may not take decisive action to achieve it.

Inflation in the January-July period hit 3.5 percent, driven by the sizzling economy and a 15.4 percent surge in politically sensitive prices for pork and other food items over the year-earlier period. Prices soared 5.6 percent in July over the same month last year -- the highest monthly inflation rate since February 1997.

Seeking to rein in the price surge, the central bank earlier this month raised its benchmark deposit and lending rates the fourth time this year.

Bank officials have also warned of an asset bubble, signaling rising concern about Chinese stock markets, which have continued to close at record highs despite indications of upcoming attempts by the central bank to tighten credit.