China to Guard Against Inflation in the Second Half

China should guard against inflation in the second half as concerns are mounting over the hikes of prices especially food prices, a government official said.

China should guard against inflation in the second half as concerns are mounting over the hikes of prices especially food prices, said Zhang Ping, Director of the National Development and Reform Commission, the country’s top economic planner.

The remarks were made during a discussion Thursday on a series of reports that related to state grain safety and the implementation of the central budget.

China has much inflationary pressure in the second half, Zang Ping said in a report submitted to the Standing Committee of the National People’s Congress, noting high price hike expectations driven by gloomy grain output prospect due to unfavorable weather conditions this year and speculations on agricultural food.

“Prices of some agricultural products will remain high in the second half of the year and imported inflationary pressures still exist,” Zhang Ping said, “Meanwhile, inflation expectations tend to overshoot due to speculations targeted at food in the market.”

Serious disasters such as floods and mudslides triggered by heavy rain this year hit many areas in China, leading to a possible marginal decline in grain output this year, according to experts.

The government would also make greater efforts in emissions, speeding up the transformation of the economic growth mode and guaranteeing more public resources to be devoted to improving people’s livehoods, according to his report.