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China said to impose new measures to curb price increases
By Wang Yanlin |
November 16, 2010, Tuesday
|
Online Edition
Online Edition
CHINA is working on new administrative measures to directly curb fast price increases and crack down on speculation in agricultural products and commodities after consumer prices rose at the fastest pace in 25 months in October.
The National Development and Reform Commission, the country's top planning agency, is preparing to take "administrative measures" to ease price rises directly together with some other ministries, according to the China Securities Journal today.
Possible steps include price controls, subsidies for shoppers and a crackdown on hoarding. Mayors may be made responsible for supervising the price of a basket of food items, and those found speculating on corn or cotton will be punished severely.
Such direct intervention will mark an escalation of the government's efforts to tame inflation.
"Policies that are being considered aim at containing the momentum of price increases," an anonymous source was quoted as saying.
The Consumer Price Index, the main gauge of inflation, surged 4.4 percent from a year earlier last month, the National Bureau of Statistics said last Thursday.
With little chance to reset the motion of rocketing consumer prices, it is already a mission impossible for China to control this year's inflation under 3 percent, a target set previously.
China's consumer price index jumped 3 percent year-on-year in the first 10 months, powered by relentlessly rising food costs. And it has grown into an all-around inflation in recent months when non-food sector reported faster price increases.
Natural disasters in China were once blamed for the price surge. But now more factors, including too much liquidity on the market, were cited to fuel the price hike.
Zhou Xiaochuan, governor of China's central bank, said today that China's economy is growing in line with the government's road map, but price rises are a concern.
"Upward pressure on prices needs to be watched. We will continue to maintain appropriate growth of money and credit," Zhou said.
The National Development and Reform Commission, the country's top planning agency, is preparing to take "administrative measures" to ease price rises directly together with some other ministries, according to the China Securities Journal today.
Possible steps include price controls, subsidies for shoppers and a crackdown on hoarding. Mayors may be made responsible for supervising the price of a basket of food items, and those found speculating on corn or cotton will be punished severely.
Such direct intervention will mark an escalation of the government's efforts to tame inflation.
"Policies that are being considered aim at containing the momentum of price increases," an anonymous source was quoted as saying.
The Consumer Price Index, the main gauge of inflation, surged 4.4 percent from a year earlier last month, the National Bureau of Statistics said last Thursday.
With little chance to reset the motion of rocketing consumer prices, it is already a mission impossible for China to control this year's inflation under 3 percent, a target set previously.
China's consumer price index jumped 3 percent year-on-year in the first 10 months, powered by relentlessly rising food costs. And it has grown into an all-around inflation in recent months when non-food sector reported faster price increases.
Natural disasters in China were once blamed for the price surge. But now more factors, including too much liquidity on the market, were cited to fuel the price hike.
Zhou Xiaochuan, governor of China's central bank, said today that China's economy is growing in line with the government's road map, but price rises are a concern.
"Upward pressure on prices needs to be watched. We will continue to maintain appropriate growth of money and credit," Zhou said.
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