International Law

Battling rampant inflation, Beijing caps prices on food commodities

By Sam Woollard

Food coupons may be re-introduced
 
BEIJING, Jan 18 - The National Development & Reform Commission announced that from today prices on basic commodities such as grains, meat, milk, edible oil, eggs and liquefied petroleum gas would be curbed with immediate effect. This is the first occasion in 15 years Beijing has taken such a step, and follows rampant price hikes in cooking oil, which rose 58 percent over the past 12 months, and pork, beef and mutton which have risen in price more than 40 percent over the past two months.

It means that producers of daily necessities, retailers and wholesalers now require approval from central and provincial governments before raising prices, and comes just three weeks prior to Chinese New Year ? a time where demand for food is particularly high and certain retailers raise prices to take advantage of this. (more…)

Full post as published by China Briefing Blog on January 17, 2008 (boomark / email).