Chinese premier Wen re-emphasizes price stability

By Kim Young-gyo
HONG KONG, July 6 (Yonhap) -- Chinese Premier Wen Jiabao has re-emphasized that stabilizing consumer prices remains top of the agenda for Chinese leaders, the government said Wednesday, amid inflation pressure continuing to rise in the country.
"Stabilizing the general level of consumer prices remains the top priority of our macroeconomic regulation," Wen said in a statement released on the Chinese government's Web site. "Prices will be effectively controlled when government policies take effect."
Wen's remarks came as China's inflation in June is expected to have reached the highest level in 35 months due largely to soaring food prices in the country.
Many market watchers estimate China's consumer prices probably grew more than 6 percent in June, renewing the record-high level of 5.5 percent the previous month.
The premier said he has noticed the sharp rise in pork prices. "The government is taking steps to ease inflation and pork prices will start to drop in the coming months," he said.
Pork is the most widely consumed and affordable meat in China. Pork prices account for a large proportion of China's food prices, which take up to 30 percent of the CPI. The price of pork surged to nearly 28 yuan (US$4.33) per kilogram last month, compared to the 2008 peak of 26 yuan.
Wen stressed China's economic performance has been generally good this year, boosted more by domestic spending than government stimulus.
"But there are still uncertainties in both the domestic and external markets," he said. "We should be confident of further growth while remaining sober-minded for any potential risks and difficulties."
He also said China should achieve its economic restructuring and strengthen its economic power through self-innovation and the nurturing of domestic human resources.
China's economy is estimated to have slowed down to around 9.5 percent in the first half of this year as the government seeks to cool down its heated economy on surging inflation. Last year, the Chinese economy expanded 10.3 percent from the previous year.
ygkim@yna.co.kr