January 10, 2008	Thursday	Zilhaj 30, 1428

BEIJING, Jan 9: China will introduce partial price freezes on basic commodities such as gas and oil and crack down on profiteering, hoarding and other activities fuelling inflation, the government said on Wednesday.

In a cabinet meeting chaired by Prime Minister Wen Jiabao, the government also threatened market intervention and an expansion of punishments for those who violate the nation’s price law, a circular said.

“Present prices for crude oil, grains and other primary products are rising on the international market and bringing rather large pressures on to domestic prices,” the circular posted on the government website said.

“Every region and every department must support the policy of ‘preventing the fast-paced economy from becoming overheated and stopping structural price rises from turning into clear inflation.’”

In the coming months, adjustments on prices for oil products, natural gas, and electricity will not be permitted, the circular said.

Price rises for gas, water, heating and public transport and other public services, including school fees will not be allowed, while prices for medical services and agricultural products, such as fertiliser will be stabilised, it said.

“Management over prices of basic living commodities will be strengthened,” the circular said.

“Provisional price intervention measures will be implemented in accordance with the price law.”

Inflation in China hit an 11-year high of 6.9 per cent in November 2007, according to official statistics.

The spike was propelled by an 18.2pc rise in food prices. The price of pork, which forms the core of most Chinese diets, was up by 56 percent.

Inflation has traditionally been a cause of concern for China’s government, as rising prices have historically fuelled social unrest and anti-government protests.

“We must be on the look-out for a small number of enterprises in some areas that are increasing prices across the board, hoarding and profiteering and driving up prices,” the circular said.—AFP