The Legal Opening of Commodity Price and the Firm Control of Inflation

This paper,by proceeding from the basic laws of market economy and the basic standpoints of expanding domestic need,encouraging consumption and paying attention to people’s livelihood,make some comments on the recent dramatic rise of the price of the basic means of livelihood in China and the 16 measures promulgated by the State Council for the purpose of stabilizing consumption prices.It elaborates that lifting the control of commodity price is required by the basic laws of market economy,and proposes that scientific price control policies are necessary and that we should lift price control and make proper adjustments after we determine whether the raise of price is for speculation or an actual tendency.It also demonstrates the harm that could be done in the case of inflation and points out that inflation shall be under strict control.Finally,it suggests that we keep a reasonable growth rate of salaries and improve the subsidy policies for the poor to improve people’s livelihood.