China's fuel price hike complicates fight against inflation

China raised gasoline and diesel prices on Sunday in response to rising international crude oil prices, sparking concerns that the move could place upward pressure on inflation, the Wall Street Journal reported. The National Development and Reform Commission (NDRC) said gasoline and diesel prices would each rise by US$53 per metric ton. This represents a 4.1% increase in the average gasoline retail ceiling benchmark, and a 4.5% increase in the diesel retail ceiling benchmark. The NDRC also said the benchmark ex-factory price of No. 3 jet kerosene would increase by US$53 a ton, up 5.8%. The commission will continue to subsidize farmers, the fishery and the forestry sectors and said public transportation prices will not be increased to prevent the fuel price hike from causing a “chain reaction” of price effects.