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China freezes government-set prices through year end
2007-09-20 03:17:23 Shanghai Daily

CHINA today froze government-set prices through the end of this year and ordered all government bodies to "closely monitor" food prices and supplies during the coming two festivals after inflation hit a decade-high last month.

The order, issued by six central government departments, stressed that the government, in principle, will freeze government-set prices throughout this year and any price hike without authorities' approval are banned during the Mid-Autumn Festival and the National Day holiday.

The government can control prices of items such as cooking oil, sugar, gasoline, tobacco, salt, coal and fertilizer.

The order was published on the Website of the National Development and Planning Commission, and was jointly issued by the commission and the ministries of finance, agriculture and commerce, the State Administration for Industry & Commerce and General Administration of Quality Supervision, Inspection and Quarantine.

The government also required subordinate agencies to stay up to date about the production, consumption and storage of some key daily necessities such as cooking oil, pork, eggs, seafood and mooncakes during the festivals.

The order came after China's Consumer Price Index, a main gauge for inflation, rose to 6.5 percent in August, its highest monthly rise in 11 years, boosted by a double-digit rise in food prices, including pork.

Pork prices have soared due to a shortages on a decline in pig rearing, rising feed costs and an outbreak of a pig disease that killed more than 70,000 animals and infected 280,000 this year.

The government has tried to bring down the price of pork by encouraging farmers to raise more pigs with promises of free vaccinations and other aid.

The order said government bodies should make sure that food supplies are enough during the Mid-Autumn Festival that falls on September 25 and the week-long National Day holiday starting October 1.

The country's pork reserves, including some live stocks, can also be used during the festivals if necessary to maintain "market stability," a direct factor to China's development, reform and stability, the statement said.

It also told local authorities to closely watch market prices of pork and other meat, eggs, electricity, liquefied gas and ticket fares at scenic spots.

People are encouraged to phone 12358 to report any deliberate price increases during the festivals.

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