Economy

China rolls out measures to fight inflation

(Xinhua)
Updated: 2010-11-22 10:38

BEIJING - The State Council, China's Cabinet, announced Sunday a slew of measures to rein in rising commodity prices to ease the economic pressures on the people.

Local governments and departments are required to boost agricultural production and stabilize supply of agricultural products and fertilizer while reducing the cost of agricultural products and ensuring coal, power, oil and gas supplies, the State Council said in a seven-page circular.

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Local governments must also temporarily disburse subsidies, the circular added.

Local authorities were also ordered to establish coordinated social-security mechanisms that promise a gradual rise in basic pensions, unemployment insurance and minimum wages.

China's consumer price index?(CPI), the main gauge of inflation, rose to a 25-month high of 4.4 percent in the 12 months to the end of October. The hike was mainly due to a 10.1-percent surge in food prices. Food prices have a one-third weighting in China's CPI calculation.