China pledges more efforts to stabilize prices

BEIJING—China will take further measures to stabilize the general price level to maintain market and social stability, according to an executive meeting of the State Council on Wednesday.
Chinese Premier Wen Jiabao presided over the meeting. China’s consumer price index rebounded to 6.5 percent in October on hikes in grain and pork prices. It was up from 6.2 percent in September and matched the 11-year monthly record in August.
The government will boost investment in farm infrastructure construction and raise direct subsidy to farmers to maintain grain acreage and encourage planting of oil crops and vegetables, the meeting said. It also pledged comprehensive measures to expand the crude oil production and refining capacities to guarantee oil products supply.
Chinese Premier Wen Jiabao said Monday his government would take measures to ensure sufficient supply and stabilize prices. “Prices have been on the rise these days and I’m aware that even a one-yuan (0.13 U.S. dollars) increase in prices will affect people’s lives,” said Wen during his visit to some needy citizens in Dongcheng District of Beijing.
To prop up people’s incomes, Wen called on employers in the country to offer higher salaries and to strictly abide by the rules on minimum wages. “Only when people’s quality of life is improved will we feel reassured and believe we did a good job,” said Wen.
To prevent prices from rising drastically, the government was trying to ensure adequate supply by giving support to the pig-raising, cooking oil and dairy industries and encouraging imports, said Wen. It was also cracking down on activities that attempted to force up prices far beyond real values, said Wen. Prices were stable from 2003 to 2006 but climbed rapidly this year, said Wen, adding that the recent price hikes were resulted from such factors as the rising oil and grain prices on the international market. —Xinhua