Chinese Government adopts measures to tackle food inflation

| November 17, 2010 | 0 Comments
Chinese Government adopts measures to tackle food inflation

The Chinese Government has today announced plans to curb double-digit food price inflation.

A number of measures have already been introduced by the Government to control prices, such as hiking interest rates – the first time since 2007 such a move was made.

Last week, the National Bureau of Statistics (NBS) revealed the consumer price index rose 4.4% in October, up from 3.6% in September. Food prices rose 10.1%.

Not only was the rate higher than analysts had expected, it represented the fastest pace since September 2008 – at the start of the global financial crisis.

At the time, the Bureau said more needed to be done to control prices.

Inflation fears are always a concern of Chinese officials due to the potential for price rises to trigger civil unrest.

Today, the Government said it will provide poorer families with subsidies and did not rule out price controls if key products such as vegetables, grain and coal and other energy supplies worsen.

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