Economy

China plans 'one-two punch' against food prices rise

(Agencies)
Updated: 2010-11-16 10:30

BEIJING - China will look to deliver a "one-two punch" against food prices surge in the coming weeks by implementing price controls and cracking down on speculators, official media reported on Tuesday.

The government is very concerned by the rapid increase in food prices and is determined to bring them under control, the China Securities Journal reported on its front page.

It said that the National Development and Reform Commission, the country's top planning agency, and local governments were considering a series of actions.

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Possible steps include price controls, subsidies for shoppers, a crack-down on hoarding and price gouging as well as a system whereby mayors are made responsible for a basket of food items.

Those found speculating on corn or cotton will also be punished severely, the report added.

"Price increases, particularly overly rapid food price increases, are the main economic problem faced by the country at present. The policies that are being considered aim to contain the momentum and will be delivered in combination as a one-two punch," the reported cited an unnamed source as saying.

Consumer price index sped to a 25-month high in October, rising 4.4 percent from a year earlier. Food, which makes up about a third of China's CPI, led the way, climbing 10.1 percent. Non-food items increased just 1.6 percent.