Consumption Expenditure News
- Nation freezes prices
Date: 20-Sep-2007 Sources: (Shenzhen Daily)
THE Chinese Government yesterday froze the prices it controls for the rest of the year, in the latest sign of its mounting concern over inflation.
The government also stressed the importance of holding down market-driven prices during the forthcoming holiday period, saying it would have a direct impact on the country's 'development, reform and stability.'
Ensuring stable prices would also create favorable conditions for the opening of the Party's congress Oct. 15, a statement issued by six ministries said.
The government still administers a vast array of prices, including those for land, transport, utilities and fuel.
The statement said that, in principle, the government would not introduce any new price changes for the rest of the year.
'All current rules on goods and service prices controlled by the government should be strictly implemented. Any unauthorized price rise is strictly forbidden,'the statement said.
The ministries ordered local governments not to raise prices without the approval of the National Development and Reform Commission, the main planning agency.
The statement urged local governments to raise minimum wages as soon as possible to make up for inflation, which jumped to 6.5 percent in the year to August, the highest level since December 1996.
The six ministries also issued a fresh warning against overcharging and price fixing.
The main source of inflation has been a surge in the price of pork, China's staple meat, caused by disease, rising feed grain costs and low prices last year, which deterred farmers from rearing more animals.
To keep a lid on pork prices over the holidays, the government would draw if necessary on the country's pork reserves, the statement said.
It also said the authorities needed to provide ample supplies of grain, edible oil, eggs, aquatic products and mooncakes.
Separately, the government is set to provide more aid to dairy farmers as part of its effort to control rising food prices.
The State Council held a meeting yesterday to discuss financial support for dairy farmers after increasing feed costs and low milk prices forced many farmers to stop raising cows.
'There has never been a meeting before of State Council leaders to discuss dairy cows,'said one official with the China Dairy Association.
Some 40 percent of dairy farmers are losing money and some have had to kill their cows, the official said.
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