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A senior economic official says China is not currently suffering from inflation and the government should concentrate on fighting deflation. Retired Gao Lanfang in the northern city of Shenyang depends on her 900 yuan monthly pension. She finds her income is being eaten away by rising vegetable prices. Gao Lanfang, Shenyang resident, said, "The government needs to take care of people's wishes. Prices have to be curbed." Entrepreneur Mr.Lu worries that inflation may cost him more in his floor-making business, and lower its competitiveness. Lu Weiguang, president, Anxin Floor, said, "If the cost of chemicals, logistics and packing rises because of inflation, our exports will suffer. So the possibility of future inflation is a big headache for us. " But a senior official with the planning body the National Development and Reform Commission dismisses inflation expectations. He says current price rises are due to bad weather and seasonally changeable food prices. Peng Sen, Deputy Director, National Devpt. & Reform Commission, said, "One thing we should be clear is that, there is no inflation in the Chinese economy at present. In fact, since a year ago, the government's focus has been on fighting deflation." Peng Sen says the reason why some people have felt prices rising in 2009 is that some prices for water, power, oil and natural gas have been raised by local governments. These are resource prices, and do not cause inflation. Peng Sen said,"The price-setting process has to consider the general public's demand and purchasing power. More subsidies should be given to financially poor groups." In the price inflation index, food prices account for one third of the weight. China's grain output has been increasing for the past six years. Edible oil and pork meat are abundant too. So general food prices are unlikely to rise significantly with average prices in 2010 stable. I am a professional editor from http://www.himfr.com/, and my work is to promote a free online trade platform. http://www.himfr.com/ contain a great deal of information about used casting machine,internet radio receiver,infrared sauna, welcome to visit!
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