BASEL, Switzerland -- The president of the European Central Bank warned today that there were considerable risks of worldwide inflation and said central banks must make an effort to lower expectations that prices will rise.

"On a global level, inflationary risks are significant," ECB President Jean-Claude Trichet said.

Trichet, who spoke to reporters during the global economy meeting of the Bank for International Settlements, said central banks had no time for complacency.

"The present level of inflation must be transitory," he said.

Heads of other central banks have voiced similar concern about soaring food prices.

Trichet said second-round effects caused by higher energy and food prices on companies' wage and price-setting behavior must be avoided.

Polish central bank President Slawomir Skrzypek told reporters that the price increases were "a global problem …. But we cannot use monetary policy to manage this problem."

Higher food costs mean higher inflation, which will reduce consumption, savings and investment. A recent report by the Asian Development Bank said that if governments raise interest rates to control inflation, this could reduce demand and trigger an economic slowdown.

People's Bank of China Governor Zhou Xiaochuan said today that interest rates were only one option among others to control price increases.

"We always say there is [the] possibility to use interest rates to go further to control the inflation in China," Zhou said. "But whether we chose this instrument or that instrument, we still have some options."