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Bid to cut inflation and level food costs
15/1/2008 9:36

China said yesterday it would take legal, economic and 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 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 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 commodities, such as grain, oil, meat, poultry and eggs.

It added large companies were required to register before raising commodity prices.

The increasingly prominent illegal pricing had disturbed the market and affected people's lives and the consumption environment, the meeting was told.





 



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