China lifts ban on raising cooking oil prices

China will end a semi-official ban that prohibited cooking oil producers from increasing prices, a policy move that suggests the government believes inflationary pressure is easing, the Financial Times reported. Prices for edible oil were unofficially frozen in November last year; the ingredient is so essential in Chinese kitchens that authorities feared price increases might ignite public anger. Wilmar International (F34.SIN), the largest player in China’s cooking oil market, said it lifted prices by an average of 5% this week, after receiving approval on an “informal request” for permission made to the National Development and Reform Commission. Beijing has struggled to curb inflation, which has been running at a three-year high. Many economists predict next week’s inflation figure will be the same or slightly lower than June’s 6.4% annual increase.