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Chinese gov't to block imported inflation impact

By Hao Yan (chinadaily.com.cn)
Updated: 2011-04-08 17:40

National Development and Reform Commission Vice-chairman Peng Sen said the Chinese government will not allow foreign factors to drive a rise in domestic prices, China National Radio reported Friday.

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Peng said Thursday that the imported inflation, with uncertainties and uncontrollable factors, will ease while the macro-control measures bear more fruit. He added the country will see prices stabilize in the middle of this year and then drop later, according to the report.

The government took a series of actions to prevent the crude oil price from impacting domestic prices, Peng said at the 2011 National Economic System Reform Conference in Tianjin.

To control climbing oil prices, the government is discussing an oil pricing mechanism that would split the costs among the government, enterprises and consumers, Peng said.