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.
Xinhua
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