Signs that price rises checked
By Wang Yanlin |
November 26, 2010, Friday
|
Print Edition
Print Edition
PRICES have finally shown signs of cooling in the past fortnight, with commodity futures falling and everyday necessities becoming cheaper, according to official data released yesterday.
A sharp drop in domestic commodity futures has been observed since November 12, the National Development and Reform Commission, China's top economic planning agency, said.
Many commodities, including copper, zinc, rubber, pure terephthalic acid, cotton, plastic, soy oil and sugar, all reported a 10 percent fall in futures prices on Wednesday, compared with November 11. The futures price of cotton dived 23.6 percent.
Futures prices of agricultural products such as wheat, rapeseed and corn fell by an average of 6 percent during the period, and the cooling may gain momentum, the commission said.
"China's crackdown on illegal speculation has worked to some extent," the commission said. "This is also influenced by global market prices, which show a similar cooling trend."
Meanwhile, the National Bureau of Statistics said consumer prices of cabbage, celery, cucumber and tomato all retreated in the period from November 11 to November 20 in the country's 50 major cities, compared with the previous 10 days. The cost of cucumber fell 0.31 yuan (0.05 US cents) to 4.76 yuan a kilogram by last Saturday, a 6.1 percent price withdrawal.
"Policies may have produced positive results," said Li Maoyu, an analyst at the Changjiang Securities Co. "The authorities have got to grips with reducing inflationary expectation and should continue."
China's Consumer Price Index, the main gauge of inflation, surged to a 25-month high of 4.4 percent from a year earlier in October. Food costs, which rocketed 10.3 percent year-on-year last month, were a major driver.
The National Development and Reform Commission said on Wednesday the country will improve the implementation of rules targeting agricultural product speculators and may inflict harsher punishment on them, in the latest bid to fight inflation.
The commission has been reiterating its tough stance against price rises. Last Tuesday, it said it may impose food price controls, offer subsidies to the needy and crack down on commodity speculation.
On Sunday, it said that China has the capacity to keep consumer prices stable.
The Ministry of Commerce said China will release stockpiles of pork and sugar to tackle price surges, while the Cabinet promised to ensure supplies of coal and oil.
A sharp drop in domestic commodity futures has been observed since November 12, the National Development and Reform Commission, China's top economic planning agency, said.
Many commodities, including copper, zinc, rubber, pure terephthalic acid, cotton, plastic, soy oil and sugar, all reported a 10 percent fall in futures prices on Wednesday, compared with November 11. The futures price of cotton dived 23.6 percent.
Futures prices of agricultural products such as wheat, rapeseed and corn fell by an average of 6 percent during the period, and the cooling may gain momentum, the commission said.
"China's crackdown on illegal speculation has worked to some extent," the commission said. "This is also influenced by global market prices, which show a similar cooling trend."
Meanwhile, the National Bureau of Statistics said consumer prices of cabbage, celery, cucumber and tomato all retreated in the period from November 11 to November 20 in the country's 50 major cities, compared with the previous 10 days. The cost of cucumber fell 0.31 yuan (0.05 US cents) to 4.76 yuan a kilogram by last Saturday, a 6.1 percent price withdrawal.
"Policies may have produced positive results," said Li Maoyu, an analyst at the Changjiang Securities Co. "The authorities have got to grips with reducing inflationary expectation and should continue."
China's Consumer Price Index, the main gauge of inflation, surged to a 25-month high of 4.4 percent from a year earlier in October. Food costs, which rocketed 10.3 percent year-on-year last month, were a major driver.
The National Development and Reform Commission said on Wednesday the country will improve the implementation of rules targeting agricultural product speculators and may inflict harsher punishment on them, in the latest bid to fight inflation.
The commission has been reiterating its tough stance against price rises. Last Tuesday, it said it may impose food price controls, offer subsidies to the needy and crack down on commodity speculation.
On Sunday, it said that China has the capacity to keep consumer prices stable.
The Ministry of Commerce said China will release stockpiles of pork and sugar to tackle price surges, while the Cabinet promised to ensure supplies of coal and oil.
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