BEIJING - China took its most drastic step yet on Wednesday to slow a rapid rise in politically sensitive food prices, ordering producers to obtain government approval for any further increases.
Beijing has imposed a series of measures in recent months to cool inflation but so far with little effect. Food prices soared by 18.2 percent in November, pushing overall consumer inflation to 6.9 percent, its highest monthly rate in 11 years.
Under the new controls, large food producers must obtain government permission to raise prices, while merchants must report increases in retail prices, the country's planning agency, the National Development and Reform Commission, announced. It said authorities can roll back any price increases that are deemed "unreasonable."
Rising consumer prices are especially sensitive for the communist government because they hit China's poor majority hardest. Local officials have been ordered to ensure adequate food supplies ahead of the Lunar New Year in early February, the most important family holiday of the year.
The inflation surge has been blamed on shortages of pork and grain and has been limited so far to food. But efforts to increase supplies have had little effect on prices, and authorities have accused food producers and others of improperly pushing up consumer costs.
The government already has imposed a freeze on gasoline, home heating and other basics whose prices still are state-controlled.
Also Wednesday, the government said a crackdown on illegal pricing has cut the cost of liquefied natural gas in China by up to 19 percent. LNG is widely used in China for cooking.
Investigators found LNG producers and retailers colluded to raise prices or violated government price controls, the NDRC said.
Gas producers are the second industry hit by price-fixing claims after the NDRC said in August that noodle makers illegally colluded to push up retail prices by up to 40 percent.
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