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Soaring grain, oil prices pushing China towards high inflation


June 8, 2011 - Beijing

China is facing great inflationary pressure due to soaring international grain prices and oil prices, a senior economic planning official has said.

Xinhua quoted Xu Xianping, Vice Minister of the National Development and Reform Commission, as saying that the country has taken a series of measures to control climbing prices since the second and third quarters of last year.

The measures, such as raising interest rates, increasing market supplies and cutting fees, have shown some results. The most obvious change has been a decrease in vegetable prices, Xianping said.

Countering price hikes is a top priority for the country, and measures to keep prices down will be gradually carried out over time, Xianping added.

The Consumer Price Index (CPI), a major gauge of inflation, rose to 5.3 percent in April, well above the government's annual inflation control ceiling of four percent.

ANI

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