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February price fall forecast

0 CommentsPrint E-mail Xinhua, March 7, 2011
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China's top economic planner said yesterday that February consumer prices would drop from the previous high levels, and was confident of checking inflation on the back of abundant grain reserves.

"We have the confidence and capability of keeping prices at stable levels," said Zhang Ping, minister of the National Development and Reform Commission, at a press conference.

Grain reserves had reached 40 percent of annual consumption, much higher than the world standard of 17 to 18 percent, he said, adding that the nation's wheat reserves stood at 100 billion kilograms, about one year's output.

China has made curbing inflation a top priority this year, Premier Wen Jiabao said in the government work report to the annual session of the legislature.

The Consumer Price Index, a major gauge of inflation, reached 4.9 percent in January, slightly lower than the 28-month high of 5.1 percent in November.

"The price regulation still faces pressure and risks, and we should not take it lightly," Zhang said.

He pledged increased fiscal support for major grain-growing areas to ensure the eighth straight bumper grain harvest this year. And he said farm produce reserves should be better regulated to cope with price fluctuations.

Zhang told reporters that China will give top priority to improving people's livelihoods in the five years to 2015.

"The move aims to ensure people of all ethnic groups in the country share the fruits of the reform and opening up," Zhang said. "We will focus on the establishment of a long-term mechanism to boost domestic demand," he said.

"In the past five-year plan period, we focused on growth. In the next five-year plan period, we will focus on improving people's livelihoods," Zhang said.

The minister also said that China would not allow arbitrary blackouts to meet energy-saving targets to happen again.

In order to meet the central government's goal of reducing energy intensity by 20 percent by the end of 2010 from the level five years ago, some local governments had cut electricity supplies.

Zhang admitted that the NDRC, which is in charge of energy saving and emission cut, was inexperienced at dealing with such wrong practices, and should be hold responsible for it. "We will not repeat such mistakes," he said.

Zhang also said the government will step up efforts to eliminate outdated industrial capacity and push forward key energy-saving programs.

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