MNI BRIEF: China Outlines More Controls On Prices

China will establish a guideline-based price band mechanism for essential goods and improve emergency response systems to address abnormal price fluctuations, Xinhua reported, citing guidelines issued by General Office of the CPC Central Committee and the State Council on Wednesday. 

The authorities will align price policies with fiscal, monetary, industrial, and employment goals and set price expectations based on supply-demand dynamics, economic growth, market sentiment, and external inflationary pressures, the Guidelines said. (See MNI INTERVIEW: Low Inflation Gives Room For More China Easing)

In addition, authorities will enhance controls over the balance of supply and demand and refine supporting policies to stabilise key commodity supplies, they said.

The announcement comes at a time of concerns over China’s low domestic inflation, and over the possibility of potential trade disruption related to U.S. tariffs.