Beijing, Dec 1 - China on Monday lifted its controls on food prices, the latest sign of how drastically the country's priorities have shifted from earlier this year when it was focused on fighting inflation.
China froze price increases on a wide range of food including meat, grain, cooking oil and milk products in mid-January when prices were soaring seemingly out of control.
But food prices and inflation more broadly have tumbled in recent months as the economy has slowed, prompting the government to shift its policies to prop up growth.
Consumer inflation fell to 4 percent in October, down from a 12-year high of 8.7 percent in February. Food prices, which make up a third of the consumer price index, rose 8.5 percent in October, down from a 23.3 percent increase in February.
Companies would now be free to decide on pricing for themselves, the National Development and Reform Commission said in a statement on its website (www.ndrc.gov.cn) that
Under the controls, manufacturers had to apply for approval for any substantial price increases.
However, Beijing would still keep an eye on prices and work to ensure that no one manipulates them, it said.
"We must work further on plans about how to ensure market supply of important products such as grain, pork and cooking oil and how to address abnormal price movement," the commission said.