China tries to tackle food price inflation
Sunday, 23 September 2007
BEIJING, Sept 22 (AFP): China will ensure ample food supply in the coming months to keep prices down, state media said today, in yet another reaction to shock inflation figures released recently.
The price of food staples such as wheat, soybean and pork are to be kept at an affordable level by measures such as boosting supply or lowering duties, the Xinhua news agency said, citing several government ministries.
Consumer prices soared 6.5 per cent in August, the highest rate in more than a decade. There was an 18.2 per cent hike in food prices, including a 49 per cent surge in the cost of meat.
This could have consequences for the public mood, which is watched carefully by a government that places social stability highest on its list of priorities.
Nearly half of all Chinese think prices are too high, according to a recent survey of 20,000 households by the central bank.
The State Grain Administration said on Friday it would pour more of the national grain and oil reserves onto the market to stabilise prices, in a move promptly approved by the State Council, or Cabinet, Xinhua said.
The administration may also sell some of the centrally reserved corn for less than the market price in some regions in the south to curb rising prices there.
Meanwhile, the National Development and Reform Commission, the nation's top planner, said pig breeding will continue to be encouraged to ensure the pork supply.
To offset price rises, the government has given city dwellers who live on minimum living allowances a monthly subsidy of 25 yuan (3.3 dollars).
The government also announced late Friday that the import duty on soybean would be cut from three per cent to one per cent in the period from October 1 until the end of the year.
The price of food staples such as wheat, soybean and pork are to be kept at an affordable level by measures such as boosting supply or lowering duties, the Xinhua news agency said, citing several government ministries.
Consumer prices soared 6.5 per cent in August, the highest rate in more than a decade. There was an 18.2 per cent hike in food prices, including a 49 per cent surge in the cost of meat.
This could have consequences for the public mood, which is watched carefully by a government that places social stability highest on its list of priorities.
Nearly half of all Chinese think prices are too high, according to a recent survey of 20,000 households by the central bank.
The State Grain Administration said on Friday it would pour more of the national grain and oil reserves onto the market to stabilise prices, in a move promptly approved by the State Council, or Cabinet, Xinhua said.
The administration may also sell some of the centrally reserved corn for less than the market price in some regions in the south to curb rising prices there.
Meanwhile, the National Development and Reform Commission, the nation's top planner, said pig breeding will continue to be encouraged to ensure the pork supply.
To offset price rises, the government has given city dwellers who live on minimum living allowances a monthly subsidy of 25 yuan (3.3 dollars).
The government also announced late Friday that the import duty on soybean would be cut from three per cent to one per cent in the period from October 1 until the end of the year.