China Moves to Steady Prices Amid Inflation Concerns

by 5m Editor
16 January 2008, at 10:41am

BEIJING - China is to take legal, economic and the necessary administrative measures to stabilise prices in the face of concerns over growing inflation.

The upward pressure on prices is increasing and rapid rises in food prices have had a big impact on people's lives, according to a televised conference held by the State Council attended by Vice Premier Zeng Peiyan.

The government is launching price intervention measures into some basic food goods and services and is to enhance price monitoring of important commodities, including grain, oil, meat, poultry, and eggs. Large companies will have to register before raising commodity prices.

The government said that increasingly illegal pricing has disrupted market and it ordered local authorities to clamp down on illegal pricing activities.

The government has ordered a rise in production to ensure supply ahead of the Chinese New Year, on 7 February. And it said it will adopt a prudent fiscal policy and a tight monetary policy and carry out measures to boost production of grain, edible oil, pork and dairy products.

The rapid increases in tax revenues and foreign exchange reserves have greatly enhanced the nation's ability to guarantee supply and contain inflation, the meeting said.

China's consumer price index, the main gauge of inflation, rose to an 11-year high of 6.9 per cent in November, driven primarily by food and fuel price increases.

5m Editor