China readies price controls to tackle food inflation

Price controls, either direct or indirect, inevitably lead to shortages. A close inspection of the gold and silver markets illustrates this point.

China will unveil food price controls and crack down on speculation in agricultural commodities to contain inflationary pressure that its central bank governor highlighted as a risk on Tuesday.

With consumer prices rising at their fastest pace in more than two years, the National Development and Reform Commission, the country's top planning agency, is preparing a "one-two punch" of actions to rein in food costs, official media reported.

Source: reuters.com