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Price hikes top concern
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Soaring prices are of top concern to the people and also of the government, says an article in People's Daily. The following is an excerpt:

It is not surprising market prices are a topic of discussion at this year's sessions of the NPC and the CPPCC since it is an indicator of the people's well-being. In the government work report, Premier Wen Jiabao stressed that we should "prevent economic growth from being relatively too fast which could further overheat the economy, and price rises must be curbed to prevent higher inflation".

This won the support of many members and deputies. As one member, Liu Canglong, said: "The price of a carton of milk (about 200 gram) has risen by 0.3 yuan (0.04 US cents) and pork per kg by 4 yuan (56 US cents) in the past months. The price rises are obvious and it is time to introduce controls."

Liu's words have struck the heart of the masses, burdened with the soaring prices of daily necessities. If the prices cannot be controlled, leading to higher inflation, it would severely affect the people's lives and economic growth.

In recent years, China has maintained fast economic growth and low inflation. But from the beginning of last year, the CPI has kept rising triggered by increasing pork prices. The CPI last year was 4.8 percent on the average. At the start of this year it was 7.1 percent.

According to the latest report released by the central bank, in the months to come, domestic inflationary pressure will very likely continue to rise. Against this backdrop, the government work report has pointed out we should guard against both economic over-heating and obvious inflation, which is timely and necessary.

It is necessary for sound economic development, and it also shows the government is addressing the concerns of the people.

(China Daily March 12, 2008)

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