Act against price manipulators, local governments ordered

Premier Wen Jiabao has ordered local governments to crack down on merchants who deliberately stock up on food products or release false information to drive up prices.

Mr Wen, who inspected an open market in Beijing yesterday, said stabilising food supplies and prices was vital to national development. The central government had already issued a series of measures and he believed soaring prices of pork and other foods would soon be brought back to normal.

But local governments had to act against the manipulation of prices. 'Over the past two months, the overall prices of our consumer products have recorded significant increases. The reason is mainly because of [the shortage] of pork and other food products,' Mr Wen was quoted by Xinhua as saying.

'But it is also because some businessmen have collaborated with each other and deliberately pushed up the prices.

'This has disrupted the market mechanism and damaged the public's interests.'

Mr Wen said local government ought to 'immediately' launch food-price inspections and punish those who tried to rig the market. 'Those who stock up on food products and release fabricated information to drive up food prices must be dealt with strictly,' he said.

'[Local authorities] must regularly inspect their markets to maintain good order and safeguard food safety and public health.'