China's top economic planner has levied stiff fines on household products giant Unilever, for attempting to price fix. The 2 million yuan fine is the highest ever issued in such a case.

In late March, Unilever announced it was raising retail prices from April. Other household producers later joined in the move. Authorities then stepped in, watching closely at the hike to see whether price manipulation was involved.

The investigation, conducted by the National Development and Reform Commission, says the rumor has caused hoarding of washing powder in some Chinese cities.

Chen Zhijiang, Deputy Chief, Department of Price Supervision, NDRC, said, "The spokesman of the company told the press that the whole daily product industry is ready to enter a round of price raising, and if the cost of raw materials continues to climb, the company could further raise product prices in the future. His words intensified price hike expectations among consumers. We issue the fine based on the Price Law."

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