China's central bank raised interest rates on Tuesday, its second increase in just over a month, intensifying its fight against stubbornly high inflation.

Although annual inflation slowed to 4.6 percent in December, it is set to pick up again in January with food prices on the rise.

Benchmark one-year deposit rates will be lifted by 25 basis points to 3 percent, while one-year lending rates will also be raised by 25 basis points to 6.06 percent, the People's Bank of China said. The rises take effect from February 9.

(Reporting by Aileen Wang and Ben Blanchard)