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China removes interim price control measures on food prices

(Xinhua)
Updated: 2008-12-01 19:02

BEIJING -- China's top economic planner announced its decision on Monday to scrap its 11-month interim price control measures on grain and some food products starting from this month, now that the country's Consumer Price Index (CPI), the main gauge for inflation, dropped to 4 percent last month.

National Development and Reform Commission (NDRC) has decided to resume the rights of food producers and traders to set the prices of those products independently.

Related readings:  China lifts curbs on basic food prices  Nowhere but up for food prices  Food prices to remain high: Study

"They no longer have to apply for government permission before raising prices," said NDRC in a on-line statement.

At the same time, the commission urged local pricing departments to maintain close watch on any future potential irregularity concerning food prices.

NDRC introduced national price controls on grain, food processed from grain, edible oil, meat, dairy products and eggs on January 15 as a step to tackle inflation.

Related food producers and traders wishing to raise prices then were required to apply for governmental commission beforehand.

Concerns about inflation have been largely eased in the second half this year as the the country's CPI have been falling for five consecutive months since June.