Time for price reform

The recent fall of international oil prices has lent credence to optimism about China's expectations on eased inflationary pressure.

Success in reining in runaway inflation will enable the government to focus more on keeping economic growth on track. Yet, more importantly, it will provide room for manoeuvre for policymakers to start pricing reforms necessary to achieve the country's energy-saving goals.

A week before the Chinese officials release consumer price index for July, many observers are predicting that the country's headline inflation will fall for the third consecutive month to lower than 7 percent.