Economy

Feb consumer prices set to fall: official

(Xinhua)
Updated: 2011-03-07 10:34

BEIJING - China's top economic planner said on Sunday that the February consumer prices will drop from the previous high levels, and is confident of checking inflation on the back of abundant grain reserves.

"We have the confidence and capability of keeping prices at stable level," said Zhang Ping, minister of the National Development and Reform Commission, at a press conference.

Grain reserve has reached 40 percent of annual consumption, much higher than the world standard of 17 to 18 percent, he said, adding the nation's wheat reserve stands at 100 billion kilograms, about the output of one year.

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China has put curbing inflation a top priority this year, Premier Wen Jiabao said in the government work report on Saturday.

The Consumer Price Index (CPI), a major gauge of inflation, reached 4.9 percent in January, slightly lower than the 28-month high of 5.1 percent in November.

"The price regulation still faces pressure and risks, and we should not take it lightly," Zhang said.

He pledged increased fiscal support for major grain-growing areas to ensure the eighth straight bumper grain harvest this year.

Farm produce reserves should be better regulated to cope with price fluctuations. Speculative hoardings will be cracked down, he said.

China will release the Feb CPI data next week as scheduled.