People's Bank of China Governor Zhou Xiaochuan warned on Sunday that the country needs to be vigilant for signs of deflation and said policymakers were closely watching slowing global economic growth and declining commodity prices.
Zhou's comments are likely to add to concerns that China is in danger of slipping into deflation and underline increasing nervousness among policymakers as the economy continues to lose momentum despite a raft of stimulus measures.
Zhou added that the speed with which inflation was slowing was a "little too quick", though this was part of China's ongoing market readjustment and reforms.
Beijing is determined to keep the world's second-largest economy from taking the same path of recession and deflation that has blighted its neighbor Japan for the past 20 years.
The central bank's newspaper warned last month that China is dangerously close to slipping into deflation.
The PBOC has cut interest rates twice since November and taken other steps to support growth, but economists believe it will be forced to take more aggressive measures in coming months if prices and the economy weaken further.
