China said on Monday it would take legal, economic and the
necessary administrative measures to stabilize prices, a move that
underscores its growing inflation concern.
The upward pressure on prices was increasing and the rapid rises
in food prices have had a big impact on people's lives, said a
televised conference held by the State Council, or cabinet, and
attended by Vice Premier Zeng Peiyan.
The fast 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 percent in November, driven primarily by
food and fuel price increases.
"The prices of fuel, gas, electricity, tap water, heating,
public transportation and entrance tickets to tourist destinations
will not be allowed to be raised in the near future," the meeting
said as it reiterated decisions made at a State Council executive
meeting last week.
The meeting instructed local authorities not to raise school
tuitions and fees for accommodation, medical services and
fertilizers. Mobile phone roaming fees were also ordered cut.
The government is also launching pricing intervention into some
basic necessities and services and will boost price monitoring of
important commodities, including grain, oil, meat, poultry, and
eggs. It added large companies are required to register before
raising commodity prices.
The increasingly prominent illegal pricing has disturbed market
order and affected people's lives and consumption environment, the
meeting stated.
It ordered local authorities to clampdown on illegal pricing
activities, including colluding to raise prices, hoarding goods and
jacking up prices and spreading rumors on price hikes that disturb
market order.
The government ordered to boost production and ensure supply
ahead of the Chinese Lunar New Year, which falls on Feb. 7, and the
annual meetings of the top legislature and political advisory body
in March.
It reiterated the government would 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.
(Xinhua News Agency January 15, 2008)
