From Reuters via The Financial Times:
China’s cabinet said on Wednesday that it would temporarily intervene in the market to curb price rises of basic necessities like food, underlining its concern over mounting inflationary pressures.
China is currently facing its worst consumer inflation in 11 years, driven largely by soaring food prices. Inflation has sometimes been a source of social unrest. With immediate effect, producers of daily necessities that are above a certain size will have to get government approval before raising their prices, a regular meeting of the State Council chaired by Premier Wen Jiabao concluded. [Full Text]