Chinese Premier Wen Jiabao wrote in a statement this weekend that the country must continue to curb inflation through policies to control increases in the price of food and housing, Bloomberg reported. Authorities must increase the output of farm products, limit the non-food use of corn and increase land supply for residential housing, according to the statement, which was posted on the central government’s website on October 22. Wen said during a trip to Nanning in southern China’s Guangxi province that Beijing plans to offer farmers subsidies to maintain animal feed prices and increase hog production, as well as limit the use of corn to produce starch and bio-chemical products, the statement said. Inflation has moderated since reaching a three-year high of 6.5% in July, but remained high at 6.1% in September. Former central bank adviser Yu Yongding has estimated that the figure will drop to 5.8% by the end of the year, and fall below 5% next year.
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