Friday, January 02, 2009
Shanghai: China, the world's second biggest energy consumer, lifted temporary price controls on liquefied petroleum gas, power-station coal and some staple foods such as grains and cooking oil as inflation eased, writes Bloomberg.
The removal of the price caps will take effect from tomorrow, the National Development and Reform Commission said in a statement on its Web site today.
China's inflation cooled to the weakest pace in almost two years in November. Policy makers, who 10 months ago were battling inflation at a 12-year high, are trying to prevent a spiral of falling prices, profits and consumption as the global recession pushes the economy into a slump.
China in January imposed temporary curbs on price increases for some staple foods and LPG to cool inflation expectations and ease “social tensions.”' Producers and sellers of grain, cooking oil, meat products, milk, eggs and LPG must seek government approval for increases, the top planning agency said at the time.
The government in June ordered a cap on prices of thermal coal to help power producers cope with costs as the country battles a sixth year of electricity shortages. [31/12/08]