The Chinese government is acting to curb rising prices of food and other household goods. Access to cheap basic commodities had been taken for granted as the foundation of social welfare by a population faced with soaring housing costs.

Late in 2010, a State Council plenary session headed by Premier Wen Jiabao focused on inflation, and rising food prices in particular. The meeting decided on an array of measures to rein in inflation, including regulating commodity supplies, subsidies, macro-economic measures, and market monitoring. The tightening of management by the State Council is aimed at the production, transportation and supply of agricultural products, especially crops, cooking oil, vegetables, and cotton.

It also includes boosting the production and supply of coal and oil, especially diesel, and imposing temporary controls on the prices of daily necessities and capital goods where necessary. The government also vowed to improve supervision to maintain stability of the market. Subsidies directed at the rural and urban poor and impoverished students are to be boosted.

The people's livelihood is foundation of social stability, and will be the focus of China's annual parliamentary sessions to be held in March. Topping the agenda will be the cost of housing and basic necessities. Maintaining the standard of living of ordinary people is a test of good governance, and rising prices of basic consumer goods are an obvious concern.

China's per capita income still trails far behind the United States, the European Union, and even some other emerging economies. Boosting incomes and stabilizing prices, especially of daily essentials, should be one of the government's main priorities.

The January CPI figure showed an increase of 4.9 percent year-on-year despite a revision of the commodity weightings used to calculate it. The increase from 4.6 percent in December was a warning bell for the leadership and will almost certainly lead to a tightening of monetary policy in the first quarter.

Rising food prices are partly due to poor weather conditions that affected agricultural output. And China's rapid industrialization and urbanization have increased costs and boosted demand for agricultural products.

But loose monetary policies by foreign countries, especially the second round of quantitative easing (QE2) carried out by the US Federal Reserve, have exacerbated inflation in China.

The over-issue of currency has been a global concern since the US sub-prime crisis triggered the 2008 financial crash. Printing money is seen as the easy option by governments, but it threatens to spread inflation around the world.

The Chinese government has taken sound and timely measures to combat inflation, protect living standards, and ensure social stability. Subsidies offered to the poor by the State Council make sense. A harmonious society can only be built on the basis of concern for the livelihood of the people.

In the context of globalization, China cannot solve the problem of inflation alone. Major economies should work together to take action against inflation. Excess liquidity in the global market has already begun to take effect, and every economy is bound to be affected. Governments need to exercise common sense and restraint.

Inflation is an obstacle to building a harmonious society. The leadership and the people need to work together to combat difficulties and setbacks. But the major responsibility lies with the government, whose duty is to serve the people.

The author is a Beijing-based freelance writer. He can be reached at larryhuangshuo@gmail.com.

Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.