Price hikes curbed ahead of holiday

    (Xinhua)
    Updated: 2007-09-21 23:48

    Measures will be taken across China to stabilize food prices by ensuring a plentiful supply for the remaining months of the year, particularly during the coming two holidays, the nation's top economic planner announced on Friday.

    The price hikes of food, which were partly due to short supply, drove up China's consumer price index in the first eight months of this year. The inflation indicator surged 6.5 percent year-on-year in August, the highest monthly rate in a decade.

    As the traditional mid-autumn festival and the National Day are approaching, the National Development and Reform Commission (NDRC) will, in cooperation with other six ministries, including the Ministry of Commerce and the Ministry of Agriculture, take new measures to ensure supply of foodstuffs and stabilize prices, the NDRC said.

    Pig-breeding will continue to be encouraged to ensure pork supply.

    After persistent hikes, the retail price of pork in 36 major Chinese cities fell slightly for the fifth week in a row amid government efforts to guarantee pork production and supply, according to the NDRC.

    To offset price rises, the government gave the city dwellers who live on minimum living allowances a monthly subsidy of 15 yuan (2 U.S. dollars). The NDRC announced on Friday that, besides the previous subsidy, these people would get an additional 10 yuan a month.

    The NDRC urged local governments to stabilize the food prices in the canteen of universities and colleges and give food subsidies to those students from low-income families.

    The NDRC also called on local governments to step up price inspection and set up a warning system.

    Meanwhile, the import duty on soy beans will be cut from three percent to one percent in a move to ease the recent price hike of cooking oil.



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