China rolls out measures to fight inflation

%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20State%20Council%2C%20China%27s%20cabinet%2C%20announced%20Sunday%20a%20slew%20of%20measures%20to%20rein%20in%20rising%20commodity%20prices%20to%20ease%20the%20economic%20pressures%20on%20the%20people.%20%3CBR%3ELocal%20governments%20and%20departments%20are%20required%20to%20boost%20agricultural%20production%20and%20stabilize%20supply%20of%20agricultural%20products%20and%20fertilizer%20while%20reducing%20the%20cost%20of%20agricultural%20products%20and%20ensuring%20coal%2C%20power%2C%20oil%20and%20gas%20supplies%2C%20the%20State%20Council%20said%20in%20a%20seven-page%20circular.%20%3CBR%3EThe%20cabinet%20urged%20local%20departments%20to%20step%20up%20vegetable-planting%20efforts%20while%20stabilizing%20winter%20vegetable%20production%20and%20strengthening%20grain%20and%20edible-oil%20production%20field%20management%20to%20ward%20off%20supply%20shortages.%20%3CBR%3ETo%20reduce%20delivery%20costs%2C%20road%20tolls%20for%20vehicles%20transporting%20fresh-%20and%20live-farm%20produce%20will%20be%20forbidden%20from%20Dec.%201%2C%20the%20circular%20said.%20%3CBR%3EThe%20cabinet%20also%20ordered%20local%20authorities%20to%20continue%20to%20reduce%20the%20prices%20of%20power%2C%20gas%20and%20rail-transport%20for%20chemical-fertilizer%20producers%20while%20ensuring%20coal%20supplies%20for%20power%20generation%20companies%20and%20increasing%20production%20of%20oil%20--%20especially%20diesel%20--%20to%20guarantee%20sufficient%20supply.%20%3CBR%3ELocal%20governments%20must%20temporarily%20disburse%20subsidies%20to%20needy%20people%20and%20increase%20allowances%20for%20poor%20students%20and%20student%20canteens%2C%20the%20circular%20added.%20%3CBR%3ELocal%20authorities%20were%20ordered%20to%20establish%20coordinated%20social-security%20mechanisms%20that%20promise%20a%20gradual%20rise%20in%20basic%20pensions%2C%20unemployment%20insurance%20and%20minimum%20wages.%20%3CBR%3ELocal%20departments%20were%20also%20ordered%20to%20adjust%20prices%20promptly%20and%20to%20impose%20temporary%20price%20controls%20on%20important%20daily%20necessities%20and%20production%20materials%20where%20necessary.%20%3CBR%3EMarket%20monitoring%20will%20be%20intensified%20to%20clamp%20down%20on%20hoarding%20and%20speculation%20in%20major%20agricultural%20products%2C%20the%20circular%20added.%20%3CBR%3EChinese%20decision%20makers%20have%20made%20price%20controls%20a%20top%20priority%2C%20as%20the%20consumer%20price%20index%20%28CPI%29%2C%20the%20main%20gauge%20of%20inflation%2C%20rose%20to%20a%2025-month%20high%20of%204.4%20percent%20in%20the%2012%20months%20to%20the%20end%20of%20October.%20The%20hike%20was%20mainly%20due%20to%20a%2010.1-percent%20surge%20in%20food%20prices.%20Food%20prices%20have%20a%20one-third%20weighting%20in%20China%27s%20CPI%20calculation.%20%3CBR%3EChina%20has%20been%20moving%20to%20mop%20up%20excessive%20liquidity%20to%20combat%20inflation%2C%20with%20the%20latest%20move%20to%20target%20over-liquidity%20in%20the%20banking%20system.%20%3CBR%3EThe%20People%27s%20Bank%20of%20China%2C%20or%20the%20central%20bank%2C%20said%20Friday%20it%20would%20raise%20capital%20reserve%20requirements%20by%2050%20basis%20points%20for%20all%20the%20banks%20of%20the%20country%20for%20the%20fifth%20time%20this%20year%20to%20control%20credit%20and%20liquidity.%20%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CBR%3E%3C/FONT%3E%26nbsp%3B%3C/P%3E