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China intervenes in commodity prices to ease inflation

(Xinhua)
Updated: 2008-01-16 16:47

China's top economic planner has announced price controls on a package of products, including grain, edible oil, meat, milk, eggs and liquefied petroleum gas, according to the National Development and Reform Commission (NDRC).

"Major enterprises are required to submit the price-raising scheme to the government for official approval 10 work days before they intend to raise the prices", said the NDRC in a circular on interim price intervention. The move is believed to be a bid to tackle inflation.

The government should notify the enterprises within seven work days after it gets the applications from the enterprises whether to approve or reject the schemes on the basis of whether the price rise range is reasonable, noted the circular.

The NDRC said big wholesalers and retailers were required to report to the government about the sales conditions within 24 hours when prices were raised by more than four percent in one price rise, or raised in several times by more than six percent within 10 days, or incrementally by more than 10 percent in 30 days.

The price and market regulation agencies have the right to ask the enterprises to return the prices to normal or reduce the price rise range if they regard the rise as unacceptably large.



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