Beijing, Aug 16 - China's top economic planner chided a number of instant noodle makers and an industry association on Thursday for fixing prices, saying it facilitated surging inflation and hurt consumers' interests.
China's galloping consumer prices surged by a decade high of 5.6 percent in July from a year earlier, arousing concerns rising living costs are hurting the less well-off and may fuel social unrest.
Authorities have vowed to crack down on market manipulators who hoard goods, spread rumours leading to panic purchasing or jack up prices.
The Chinese branch of the International Ramen Manufacturers Association, as well as some unnamed instant noodle producers, colluded earlier this year and made a collective decision to raise prices sharply due to rising costs, the National Development and Reform Commission said in a statement published on its Web site (www.ndrc.gov.cn).
"Companies have the right to adjust prices due to changing market situations," the planner said.
"But the adjustment should be in line with price laws, which stipulate that (an) industry association is strictly prohibited from acting in collaboration with companies in manipulating prices."
Beijing wants to show its firm commitment to keeping a lid on surging consumer inflation by making an example of these firms, a typical practice of the central government to deter those who only pay lip services to its orders.
Last summer, the cabinet disciplined a clutch of senior officials in Inner Mongolia for giving the go-ahead to the construction of some power plants when it was trying to contain red-hot fixed-asset investment.
In 2004, Beijing detained 10 people and punished eight officials over illegally approving a steel plant in Jiangsu province when it was striving to prevent the economy from bubbling over.
The top economic planner ordered the instant noodle makers to "correct their behaviours" and apologise to the public.
It said it would also make further investigations and deal with the issue according to law.
The State Council, China's cabinet, issued an urgent order to local governments on Tuesday to spare no efforts to contain soaring food prices.
China this week also sent officials from six government agencies to a dozen provinces to investigate to ensure local authorities are complying in full.