China strengthens monitoring of farm produce prices

BEIJING - China will strengthen monitoring of its agricultural products market during the summer flood season to stabilize prices and prevent an inflation rebound, the country's top economic planning agency announced on Monday.

A farmer works in a corn field in Hohhot, North China's Inner Mongolia autonomous region, June 18, 2012. [Photo/Xinhua]

Local authorities should step up monitoring of supplies and price changes of agricultural products, especially those of staple vegetables, according to a statement posted on the National Development and Reform Commission's website.

Provinces that have been hit by severe storms and floods should begin monitoring vegetable prices and increase the frequency of price checks in a timely manner, it said.

China's consumer price index (CPI), the main gauge of inflation, eased to three percent in May, its lowest level since June 2010, giving the government further leeway to loosen credit to boost the slowing economy.

However, the nation's leaders are wary of food price hikes as they account for nearly one-third of the weighting in calculating the CPI.

The statement said local authorities should release stocks, provide temporary subsidies and increase market supplies in the event of disruptions from severe weather or natural disasters.