Due to soaring crude oil prices and the earthquakes in Sichuan Province, prices continue to rise in Guangzhou, said Luo Jiaxiang, Director of the Price Control Administration of Guangzhou Municipality. At a conference on price controls and maintenance of market stability held early this year, experts estimated that the CPI in 2008 would increase at first and then drop gradually. However, a decline of the CPI seems unlikely to come in the second half of 2008 as was expected and it is hard to control the average growth rate of the CPI within 4%.

So far, the Price Control Administration of Guangzhou Municipality has established a special team to take charge of price controls preventing prices from skyrocketing due to the ongoing disaster relief activities. Daily price monitoring shows that there has been no marked fluctuations in prices for foods, edible oils, meat, eggs, vegetables, chicken and medicines. However, prices for construction materials like steel, especially concrete, increased a lot.

Too, the Price Control Administration of Guangzhou Municipality, on May 27th, issued a Circular on Strengthening Price Controls for Market Stability during Disaster Relief period which requires that producers should bear in mind their social responsibilities and conduct production based on market demands. It also says that producers shall take measures to tackle cost increases and maintain price stability for products such as foods, medicines, fuels and construction materials. Meanwhile, anyone, who tries to manipulate or corner the market and/or spreads false information, aimed at forcing up prices, shall be severely punished.