The National Development and Reform Commission (NDRC) announced Monday that price caps on a wide range of food products will be lifted, allowing the market to decide prices, the South China Morning Post reported. One analyst said the move indicates that Beijing is becoming worried about deflationary pressure. In January this year, China capped food price appreciation and required food producers to apply for approval for any significant price increases, but as inflation has eased, the focus has shifted toward providing more policy support to economic growth. An economist with a government think tank called the price caps "meaningless" in the face of already falling prices.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved