China inflation in controllable range: NDRC

Updated: 2011-08-10 09:17


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BEIJING - China's consumer prices are currently within a mild and controllable range after measures to fight inflation have demonstrated some initial effect, a senior government official said Tuesday.

Zhou Wangjun, vice director of the National Development and Reform Commission's pricing department, reiterated that the current round of inflation is approaching a turning point after rising 25 months, and price rises will likely ease for the rest of the year.

He made the comments after the National Bureau of Statistics said in the morning that inflation escalated to a 37-month high of 6.5 percent year-on-year in July, driven by a 14.8 percent surge in food costs.

He expects food prices will remain high in the second half of this year, but the overall price level will fall due to the quick fading of carry-over effects since August.

However, he warned of a big possibility that the United State will introduce a third round of quantitative easing policy to repay debt and boost economic growth, which may push up prices of international commodities and increase pressure of imported inflation.

The policy may also trigger influx of more speculative money into China and increase difficulties for the government to stabilize prices, he said.

China will continue to reduce circulation fees, improve social security and crack down on the hoarding of goods and speculation to keep prices in check, he said.

In addition, China will increase supplies of grain, pork and vegetables to keep farm produce prices basically stable, he added.