China Freezes Some Prices in Move to Contain Inflation

BEIJING (AP) — China’s government has ordered some prices frozen and told officials to closely monitor others in its most drastic step yet to contain a surge in inflation.

The order, issued late Wednesday, came after inflation rose to 6.5 percent in August — its highest monthly rate in 11 years — propelled by a double-digit rise in politically sensitive food prices.


The order stressed the importance of maintaining “market stability” ahead of a key Communist Party meeting next month. It said controlling inflation would affect China’s development, reform and stability.

Government-set prices would be frozen under the order, though it did not specify which items were covered. A man who answered the phone at the NDRC and refused to give his name said he was unclear what goods would be affected.

A list on the Web site of the Beijing city government planning agency said products for which the state still controls prices include cooking oil, sugar, tobacco, salt, coal and fertilizer.

AP